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Tesla Motors (TSLA - Free Report) hit a new record high, topping the $1,000 mark for the first time. With the surge, the automaker became the most valuable car company in the world with market cap jumping to more than $190 billion. It also overtook Japanese automaker Toyota Motor (TM - Free Report) , whose market cap stands at $182.3 billion.
This is especially thanks to positive news about its battery technology along with the possibilities of new products. Chief Executive Elon Musk stated that it was time to bring the Tesla semi commercial truck to "volume production." The luxury carmaker wants to deliver the first Tesla semi vehicles in 2021, which is expected to be priced at around $150,000 for the 300-mile model and around $180,000 for the longer 500-mile model (read: Nasdaq Hits 10,000 for the First Time: ETFs to Bet On).
Additionally, demand for Model 3 is ramping faster than expected. Earlier this week, monthly sales of China-made Model 3 vehicles jumped to a record high in the country, suggesting that demand for Tesla's fully electric cars is picking up in the important market. Per the China Passenger Car Association, Tesla sold 11,095 Shanghai-produced Model 3 vehicles in May, about triple the number sold in April.
Further, one analyst Wedbush lifted his bull case target on Tesla to $1,500 from $1,300 on optimism over strong Model 3 demand in China and the potential for "game changing" battery developments. Tesla currently has a Zacks Rank #1 (Strong Buy) and falls under a top-ranked industry (in the top 36%).
ETFs to Buy
Investors seeking to tap Tesla’s growth should buy ETFs having substantial allocation to this luxury carmaker. We highlight five of them in detail below.
The product provides global exposure to a broad range of firms engaged in lithium mining, refining, and battery production by tracking the Solactive Global Lithium Index. Holding 39 securities in its basket, Tesla occupies the second position with 14.1% share. The fund has amassed $581.7 million in AUM and charges 75 bps in annual fees.
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 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $43 million in its asset base and charges 58 bps in annual fees (read: Top-Ranked Technology ETFs Soaring to All-Time Highs).
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 35 stocks with TSLA occupying the top spot with 12.7% share. The product has accumulated $291.4 million in its asset base and charges 75 bps in fees per year.
This fund offers a pure-play global exposure to 33 auto stocks by tracking the NASDAQ OMX Global Auto Index. Tesla is the top firm accounting for 11.3% share. CARZ has a lower level of $18.4 million in AUM and charges 70 bps in fees per year. The product has a Zacks ETF Rank #5 (Strong Sell) with High risk outlook (read: Auto Sales Recover in May: ETF & Stocks to Ride On).
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), increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient. In total, the fund holds 37 securities in its basket with Tesla occupying the top position, accounting for 11.4% share. The product has gathered $4 billion in its asset base and charges 75 bps in fees per year from investors.
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Tesla Tops $1,000: ETFs to Ride High
Tesla Motors (TSLA - Free Report) hit a new record high, topping the $1,000 mark for the first time. With the surge, the automaker became the most valuable car company in the world with market cap jumping to more than $190 billion. It also overtook Japanese automaker Toyota Motor (TM - Free Report) , whose market cap stands at $182.3 billion.
This is especially thanks to positive news about its battery technology along with the possibilities of new products. Chief Executive Elon Musk stated that it was time to bring the Tesla semi commercial truck to "volume production." The luxury carmaker wants to deliver the first Tesla semi vehicles in 2021, which is expected to be priced at around $150,000 for the 300-mile model and around $180,000 for the longer 500-mile model (read: Nasdaq Hits 10,000 for the First Time: ETFs to Bet On).
Additionally, demand for Model 3 is ramping faster than expected. Earlier this week, monthly sales of China-made Model 3 vehicles jumped to a record high in the country, suggesting that demand for Tesla's fully electric cars is picking up in the important market. Per the China Passenger Car Association, Tesla sold 11,095 Shanghai-produced Model 3 vehicles in May, about triple the number sold in April.
Further, one analyst Wedbush lifted his bull case target on Tesla to $1,500 from $1,300 on optimism over strong Model 3 demand in China and the potential for "game changing" battery developments. Tesla currently has a Zacks Rank #1 (Strong Buy) and falls under a top-ranked industry (in the top 36%).
ETFs to Buy
Investors seeking to tap Tesla’s growth should buy ETFs having substantial allocation to this luxury carmaker. We highlight five of them in detail below.
Global X Lithium & Battery Tech ETF (LIT - Free Report)
The product provides global exposure to a broad range of firms engaged in lithium mining, refining, and battery production by tracking the Solactive Global Lithium Index. Holding 39 securities in its basket, Tesla occupies the second position with 14.1% share. The fund has amassed $581.7 million in AUM and charges 75 bps in annual fees.
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 equal-weighted stocks in its basket with Tesla accounting for 10% share. The product has accumulated $43 million in its asset base and charges 58 bps in annual fees (read: Top-Ranked Technology ETFs Soaring to All-Time Highs).
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 35 stocks with TSLA occupying the top spot with 12.7% share. The product has accumulated $291.4 million in its asset base and charges 75 bps in fees per year.
First Trust NASDAQ Global Auto ETF (CARZ - Free Report)
This fund offers a pure-play global exposure to 33 auto stocks by tracking the NASDAQ OMX Global Auto Index. Tesla is the top firm accounting for 11.3% share. CARZ has a lower level of $18.4 million in AUM and charges 70 bps in fees per year. The product has a Zacks ETF Rank #5 (Strong Sell) with High risk outlook (read: Auto Sales Recover in May: ETF & Stocks to Ride On).
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), increased use of shared technology, infrastructure and services (Next Generation Internet), and technologies that make financial services more efficient. In total, the fund holds 37 securities in its basket with Tesla occupying the top position, accounting for 11.4% share. The product has gathered $4 billion in its asset base and charges 75 bps in fees per year from investors.
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 >>