Tesla Tops Mag-7 Group in a Month: ETFs in Focus

Tesla TSLA shares have gained 25.3% over the past month (as of Sept. 22, 2025). Alphabet GOOGL shares have jumped 21.1%, while Apple AAPL, Microsoft MSFT, Meta META and NVIDIA NVDA have added 12%, 2%, 1.6% and 2%, respectively, during the same timeframe. Amazon AMZN, however, has slipped 0.1% over the past one month.

What’s Behind the Rally?

Tesla recently grabbed headlines after CEO Elon Musk scooped up $1 billion worth of company shares. Retail investors cheered it as a vote of confidence. Agreed, Tesla’s core electric vehicle (EV) business is not doing great. But the company is striving to emerge as an artificial intelligence behemoth.

Tesla focuses on autonomous driving and robotics. It has recently received approval to begin testing its robotaxi, an autonomous driving ride-hailing service in Arizona, as quoted on an investors.com article.

The investors.com article went on to highlight that Nevada's Department of Motor Vehicles also gave the green signal to Tesla’s plans for testing its robotaxi service in the state. Tesla launched its robotaxi service in late June in Austin, TX. The ride-hailing operation expanded to the San Francisco Bay Area, with safety drivers, the article indicated.

Tesla Ramps Up Output in Giga Berlin

Tesla’s Giga Berlin plant in Grünheide is gearing up for a production boost through the remainder of 2025 amid growing demand, per Germany's DPA news agency, as quoted on Economic Times. The good sales figures are coming in even as Tesla faces stiff competition from Chinese peers in Europe.

Tesla to Report Record Deliveries Data?

Tesla stock lately received another boost as Piper Sandler analyst Alex Potter maintained an Overweight rating and raised its price forecast from $400 to $500, as quoted on Benzinga. Potter landed on this target price after a research trip to China, where he met with electric vehicle makers.

The analyst said that although Chinese automakers pose huge competition to Tesla, the U.S. EV behemoth has an edge over them when it comes to "real-world AI," as quoted on the same Benzinga article. Benzinga went on to highlight that the analyst anticipated Tesla to deliver about 495,000 units in the third quarter, probably setting a record. 

Any Wall of Worry?

Tesla is apparently a pricey stock. It is trading at a massively higher valuation compared with the Automotive – Domestic industry.  Many AI-heavy Mag-7 members, including NVIDIA, do not boast as high a P/E (TTM) as Tesla.

Plus, Piper Sandler analyst Alex Potter is also less certain about Tesla's 2026 prospect, when Tesla targets 1.9 million units (as quoted on the above-mentioned Benzinga article).

However, Tesla’s projected growth rate for next year is as high as 49.40% compared with the industry growth rate of 18.70%. Over the past 30 days, one out of 11 analysts raised Tesla's earnings estimate for the September quarter. The Zacks Consensus Estimate, too, rose to 48 cents from 46 cents over the past month.

Based on short-term price targets offered by 36 analysts, the average price target for Tesla comes to $306.08. The forecasts range from a low of $115.00 to a high of $500.00. The average price target represents a decline of 28.16% from the closing price of $426.07 recorded on Sept. 21, 2025.

Bottom Line

While Tesla’s past month's stock performance has been great, the run may not be sustainable. Investors intending to play Tesla may thus tap Tesla-heavy exchange-traded funds (ETFs) like Simplify Volt TSLA Revolution ETF TESL, T-REX 2X Long Tesla Daily Target ETF TSLT and Roundhill TSLA WeeklyPay ETF TSLW. Investors can also play the likes of Consumer Discretionary Select Sector SPDR Fund XLY and Fidelity MSCI Consumer Discretionary Index ETF FDIS.

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This article originally published on Zacks Investment Research (zacks.com).

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