Tesla Inc. TSLA was among the hottest trades in yesterday's trading. The electric carmaker skidded as much as 6.4% initially after it reported its worst quarter for sales in three years but pared losses after a report said that CEO Elon Musk might be stepping back from his government work. The news sent TSLA shares higher by 5.3%.
This has put ETFs with a substantial allocation to this luxury carmaker in focus. These include Simplify Volt TSLA Revolution ETF TESL, The Nightview Fund NITE, Consumer Discretionary Select Sector SPDR Fund XLY, Vanguard Consumer Discretionary ETF VCR and Fidelity MSCI Consumer Discretionary Index ETF FDIS.
Tesla Q1 Delivery Numbers
This leading electric carmaker delivered 336,681 (323,800 Model 3/Y and 12,881 other models) cars worldwide in the first quarter. The figure declined 13% from the year-ago quarter and missed the Bloomberg estimate of 390,342, making it the worst quarter for deliveries since the second quarter of 2022. This has put the company’s full-year forecast for a return to volume growth at risk (read: Tesla Misses on Q4 Earnings, Vows to Return to Growth: ETFs to Buy).
The weak numbers can be attributed to the fact that Tesla is facing its biggest crisis in years. It wrapped up its worst quarter since 2022, with its shares falling 36% amid waves of protests, boycotts and criminal acts in response to CEO Elon Musk’s political antics and work in the Trump administration. Tesla also lost its crown as the world’s largest EV maker to Chinese EV maker BYD, which has sold 416,388 EVs in the same period.
Tesla produced 362,615 (345,454 Model 3/Y and 17,161 other models) vehicles during the quarter.
Elon to Exit DOGE?
Politico reported that Elon Musk could leave his post at the so-called Department of Government Efficiency, paving the way for the CEO to return to his focus on the struggling electric vehicle maker. Per NBC News, Trump told the Cabinet that Musk could leave in the coming months. A senior government official told NBC News that Musk would leave at the end of a 130-day stint as a special government employee.
ETFs in Focus
Simplify Volt TSLA Revolution ETF (TESL)
Simplify Volt TSLA Revolution ETF uses an active management strategy to capture the potential of Tesla’s stock price movements while implementing an advanced options overlay to manage downside risks. It has an expense ratio of 1.20% and AUM of $15.8 million.
The Nightview Fund (NITE)
The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling 5-year period. It holds 19 stocks in its basket, with Tesla occupying the top position at 19.8% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 4,000 shares. It has accumulated $22.2 million in its asset base since its launch last June (read: Tesla Stock Suffers Worst Day Since 2020: ETFs in Focus).
Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 51 securities in its basket, Tesla takes the second spot with 15.6% of the assets. Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $19.9 billion and charges 8 bps in annual fees. It trades in an average daily volume of 3.7 million shares and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook
Vanguard Consumer Discretionary ETF (VCR)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 293 stocks in its basket. Of these, Tesla occupies the second position with a 13.7% allocation. Vanguard Consumer Discretionary ETF charges investors 9 bps in annual fees, whereas volume is moderate at nearly 81,000 shares a day. The product has managed about $5.6 billion in its asset base and carries a Zacks ETF Rank #3 with a Medium risk outlook.
Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 265 stocks in its basket. Of these, TSLA takes the second spot with a 13.3% share. Fidelity MSCI Consumer Discretionary Index ETF has amassed $1.7 billion in its asset base while trading in a good volume of around 117,000 shares a day on average. Fidelity MSCI Consumer Discretionary Index ETF charges 8 bps in annual fees from investors and has a Zacks ETF Rank #4 (Sell) with a Medium risk outlook.
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Tesla, Inc. (TSLA): Free Stock Analysis Report Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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