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After being beaten badly last month on the growing concerns over vehicle demand and the company’s cash flow, Tesla Motors (TSLA - Free Report) rebounded strongly to start in June, gaining more than 12%. The stock is comfortably trading above $200.
Per the latest report by Electrek, Tesla delivered 33,000 vehicles in North America so far this quarter and is aiming to supply additional 33,000 cars in the final month of the current quarter. In order to meet this goal, the electric maker is offering a bonus of $1,200 to every sales employee and that of $550 to every delivery employee if the automaker delivers 33,000 vehicles in June. Additionally, if deliveries hit 36,000 during the month, Tesla will double these bonus amounts (read: Auto Sales Rise in May: ETFs & Stocks in Focus).
Tesla has already delivered more than 2,500 vehicles in June, scheduled 10,000 more deliveries and has 6,000 orders about to have a scheduled delivery, per Electrek. If the target is fulfilled, the electric car maker could see record deliveries this quarter, suggesting a renewed future growth story.
ETFs in Focus
In the light of this scenario, investors could bet on the company's strong sales momentum in North America with the ETFs having a substantial allocation to the luxury carmaker. We have highlighted five of these funds below.
This is an actively managed ETF, seeking a long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvement and advancements in scientific research related to energy, automation and manufacturing plus materials and transportation. This approach results in a basket of 34 stocks with TSLA occupying the second spot with 10.7%. The product has accumulated $155.2 million in its asset base and charges 75 bps in fees per year. It sees lower volume of about 29,000 shares a day (read: 5 Tech ETFs Braving Trade Tensions in May).
VanEck Vectors Global Alternative Energy ETF
This ETF tracks the Ardour Global Index Extra Liquid, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 30 stocks in its basket with AUM of $84.6 million while charging 63 bps in fees per year. Average daily volume is paltry at about 5,000 shares. Tesla occupies the fifth position in the basket with 7.3% allocation. In terms of country exposure, the fund is skewed toward the United States with 65.5% share while Denmark and China round off the top three spots.
Like ARKQ, this is also an actively managed fund and follows the same strategy. However, it provides exposure to genomic companies, industrial innovation companies or Web x.0 companies. In total, the fund holds 38 securities in its basket with Tesla occupying the top position, accounting for 10.8% share. The product has accumulated $1.5 billion in its asset base and trades in a good volume of about 382,000 shares. Expense ratio comes in at 0.75%.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report)
This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $98.2 million. It charges 60 bps in fees annually while trading in a light volume of around 15,000 shares per day. In total, the product holds 41 U.S. securities with Tesla Motors taking the fifth spot at 5%. It has a Zacks ETF Rank #3 (Hold) with a high risk outlook (see: all the Alternative Energy ETFs here).
This is an actively managed fund, focusing on the companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 38 stocks in its basket with Tesla occupying the top position at 9.1%. The ETF has amassed $417 million in its asset base and trades in a good average daily volume of around 126,000 shares. Expense ratio comes in at 0.75%.
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Tesla Steers Solid Growth Prospects: ETFs to Buy
After being beaten badly last month on the growing concerns over vehicle demand and the company’s cash flow, Tesla Motors (TSLA - Free Report) rebounded strongly to start in June, gaining more than 12%. The stock is comfortably trading above $200.
Per the latest report by Electrek, Tesla delivered 33,000 vehicles in North America so far this quarter and is aiming to supply additional 33,000 cars in the final month of the current quarter. In order to meet this goal, the electric maker is offering a bonus of $1,200 to every sales employee and that of $550 to every delivery employee if the automaker delivers 33,000 vehicles in June. Additionally, if deliveries hit 36,000 during the month, Tesla will double these bonus amounts (read: Auto Sales Rise in May: ETFs & Stocks in Focus).
Tesla has already delivered more than 2,500 vehicles in June, scheduled 10,000 more deliveries and has 6,000 orders about to have a scheduled delivery, per Electrek. If the target is fulfilled, the electric car maker could see record deliveries this quarter, suggesting a renewed future growth story.
ETFs in Focus
In the light of this scenario, investors could bet on the company's strong sales momentum in North America with the ETFs having a substantial allocation to the luxury carmaker. We have highlighted five of these funds below.
ARK Industrial Innovation ETF (ARKQ - Free Report)
This is an actively managed ETF, seeking a long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvement and advancements in scientific research related to energy, automation and manufacturing plus materials and transportation. This approach results in a basket of 34 stocks with TSLA occupying the second spot with 10.7%. The product has accumulated $155.2 million in its asset base and charges 75 bps in fees per year. It sees lower volume of about 29,000 shares a day (read: 5 Tech ETFs Braving Trade Tensions in May).
VanEck Vectors Global Alternative Energy ETF
This ETF tracks the Ardour Global Index Extra Liquid, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 30 stocks in its basket with AUM of $84.6 million while charging 63 bps in fees per year. Average daily volume is paltry at about 5,000 shares. Tesla occupies the fifth position in the basket with 7.3% allocation. In terms of country exposure, the fund is skewed toward the United States with 65.5% share while Denmark and China round off the top three spots.
ARK Innovation ETF (ARKK - Free Report)
Like ARKQ, this is also an actively managed fund and follows the same strategy. However, it provides exposure to genomic companies, industrial innovation companies or Web x.0 companies. In total, the fund holds 38 securities in its basket with Tesla occupying the top position, accounting for 10.8% share. The product has accumulated $1.5 billion in its asset base and trades in a good volume of about 382,000 shares. Expense ratio comes in at 0.75%.
First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN - Free Report)
This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $98.2 million. It charges 60 bps in fees annually while trading in a light volume of around 15,000 shares per day. In total, the product holds 41 U.S. securities with Tesla Motors taking the fifth spot at 5%. It has a Zacks ETF Rank #3 (Hold) with a high risk outlook (see: all the Alternative Energy ETFs here).
ARK Web x.0 ETF (ARKW - Free Report)
This is an actively managed fund, focusing on the companies expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 38 stocks in its basket with Tesla occupying the top position at 9.1%. The ETF has amassed $417 million in its asset base and trades in a good average daily volume of around 126,000 shares. Expense ratio comes in at 0.75%.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>