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Tesla Reports Record Q4 Deliveries: ETFs to Ride the Surge

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Tesla Motors (TSLA - Free Report) reported stronger-than-expected deliveries for the fourth quarter. The company produced a record 105,000 (86,958 Model 3 and 17,933 Model S and X) vehicles and delivered record 112,000 (92,550 Model 3 and 19,450 Model S and X) vehicles. The number is above analysts’ expectation of 106,000 polled by FactSet.

This has pushed 2019 total deliveries to 367,500 vehicles, up 50% from 2018 and in line with its guidance range of 360,000-400,000 vehicles (see: all the Alternative Energy ETFs here).

Tesla expects to deliver its first China-made Model 3 sedans to the public on Jan 7 at an event at its Shanghai plant. The company said the Shanghai plant has reached a production rate of 1,000 units per week.

Following the data release, shares of this electric-car maker popped up as much as 5% before closing at up 3%. Tesla currently has a Zacks Rank #2 (Buy) and a Growth Score of A. It belongs to a top-ranked Zacks industry (in the top 31%).

ETFs to Watch

The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted five of them below.

ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report)

This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services as well as technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials and transportation. This approach results in a basket of 37 stocks with TSLA occupying the top spot with 12.1% share. The product has accumulated $175.6 million in its asset base and charges 75 bps in fees per year.

VanEck Vectors Low Carbon Energy ETF (SMOG - Free Report)

This ETF tracks the Ardour Global Index Extra Liquid, which focuses on the performance of low carbon energy companies primarily engaged in alternative energy. It holds about 30 stocks in its basket with AUM of $105.7 million while charging 63 bps in fees per year. Tesla occupies the top position in the basket with 11.4% allocation. In terms of country exposure, the fund is skewed toward the United States with 66.9% share while Denmark and China round off the next two spots.

ARK Innovation ETF (ARKK - Free Report)

This is an actively managed fund seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research relating to the areas of DNA technologies (Genomic Revolution), industrial innovation in energy, automation and manufacturing (Industrial Innovation), the increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient. In total, the fund holds 38 securities in its basket with Tesla occupying the top position, accounting for 11% share. The product has gathered $1.9 billion in its asset base and trades in a good volume of about 299,000 shares (read: 4 Big ETF Stories of 2019 That Will Continue in 2020).

ARK Web x.0 ETF (ARKW - Free Report)

This is an actively managed fund focusing on companies that are expected to benefit from the shift in technology infrastructure to the cloud, enabling mobile, new and local services. The fund holds 40 stocks in its basket with Tesla occupying the top position at 10.8%. The ETF has amassed $428.2 million in its asset base and its expense ratio is 0.75%.

MicroSectors FANG+ ETN (FNGS - Free Report)

This ETN is linked to the performance of the NYSE FANG+ Index, which is an equal-dollar weighted index, designed to provide exposure to a group of highly-traded growth stocks of next generation technology and tech-enabled companies. It holds 10 stocks in its basket with Tesla occupying the ninth position with 10% share. The product has accumulated $55.9 million in its asset base within two months of debut and charges 58 bps in annual fees (read: 9 Leveraged ETFs That More Than Doubled in 2019).

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