Tesla Motors (NASDAQ:TSLA) TSLA has been on a stupendous ride amid the coronavirus pandemic, which has threatened to disrupt global economic growth. Shares of TSLA skyrocketed 189% so far this year and 26% during the holiday-shortened week. With the surge, Tesla is now worth more than most blue-chip firms in the S&P 500 (read: Tesla Tops $1,000: ETFs to Ride High).
The rally is showing no signs of abating especially after the electric carmaker reported stronger-than-expected deliveries for the second quarter. The company produced 82,272 (75,946 Model 3 and Y, and 6,326 Model S and X) vehicles and delivered 90,650 (80,050 Model 3 and Y, and 10,600 Model S and X) vehicles. Though the delivery number is 4.8% down from the year-ago quarter, it is higher than 88,400 deliveries recorded in the first quarter.
The increase came despite the coronavirus restrictions, which forced it to shut down the Fremont, CA, factory for most of the quarter. This is because the factory has now successfully ramped production back to prior levels.
Chief Executive Elon Musk last month 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.
Following the delivery news, shares of this electric-car maker popped up 8% at the close on Jul 2. Tesla currently has a Zacks Rank #2 (Buy) and falls under a top-ranked industry (in the top 19%).
ETFs to Watch
The solid deliveries data has put the spotlight on ETFs having higher allocation to this luxury carmaker. We have highlighted five of them below.
ARK Autonomous Technology & Robotics ETF ARKQ
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 14% share. The product has accumulated $327.4 million in its asset base and charges 75 bps in fees per year (read: Top Sector of 1H & Its Top ETFs).
ARK Innovation ETF ARKK
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 11.3% share. The product has gathered $5.1 billion in its asset base and charges 75 bps in fees per year from investors. It trades in volume of 846,000 shares per day on average.
First Trust NASDAQ Global Auto ETF CARZ
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 11.1% share. CARZ has a lower level of $17.3 million in AUM and charges 70 bps in fees per year. The product trades in average dialy volume of 7,000 shares and has a Zacks ETF Rank #5 (Strong Sell) with High risk outlook.
ARK Next Generation Internet ETF ARKW
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 47 stocks in its basket with Tesla occupying the top position at 11%. The ETF has amassed $1.4 billion in its asset base and trades in average daily volume of 323,000 shares. Expense ratio came in at 0.76%.
MicroSectors FANG+ ETN FNGS
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 $45.2 million in its asset base and charges 58 bps in annual fees. It trades in average daily volume of 9,000 shares (read: 4 Sector ETFs Up More Than 30% in First-Half 2020).
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Tesla, Inc. (TSLA): Free Stock Analysis Report
First Trust NASDAQ Global Auto ETF (CARZ): ETF Research Reports
ARK Autonomous Technology Robotics ETF (ARKQ): ETF Research Reports
ARK Next Generation Internet ETF (ARKW): ETF Research Reports
ARK Innovation ETF (ARKK): ETF Research Reports
MICRSFANG (FNGS): ETF Research Reports
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