Tesla Motors
TSLA
reported record deliveries for second-quarter 2021. The company delivered a record 201,250 (199,360 Model 3 and Y, and 1,890 Model S and X) vehicles. Deliveries were up 121%, the highest growth rate in two years, from the year-ago quarter and an acceleration from the 109% year-over-year growth reported in Q1. In fact, Tesla logged its best quarter of deliveries ever.
The electric carmaker produced 206,421 (204,081 Model 3 and Y, and 2,340 Model S and X) vehicles during the quarter.
With Q2 deliveries, Tesla has delivered a total of 386,050 cars so far in 2021. Tesla did not announce an official guidance for this year but stated in its Q1 Update Letter that it expects “to achieve 50% average annual growth in vehicle deliveries in the coming years.” The ramp-up of production at Tesla’s Shanghai Gigafactory, which began delivering vehicles to customers in China in January last year, and its forthcoming facilities in Berlin and Texas are likely to help it in achieving this goal. Both in-progress Gigafactories in Berlin and Texas are on track to begin production and deliveries this year. Also, Tesla Semi deliveries will begin later in 2021.
Tesla has been lagging the current market rally, having gained just 2.6% over the past three months. It has a Zacks Rank #3 (Hold) and Growth Score of A. It also belongs to a top-ranked Zacks industry (in the
top 27%
). All these suggest a good time for the stock in the coming months, making the beaten down price compelling for investors (read:
4 Top-Ranked ETFs to Buy for Second Half of 2021
).
ETFs in Focus
The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted seven of them below.
Simplify Volt Robocar Disruption and Tech ETF
VCAR
This is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology and then enhances the concentrated exposures with options. It is heavily exposed to the Tesla stock and Tesla call options at 25% share. The fund seeks to boost its performance during extreme moves in Tesla, charging investors 1.09% in annual fees. It has accumulated $2.1 million in its asset base while trades in an average daily volume of 5,000 shares.
iShares U.S. Consumer Goods ETF
IYK
This ETF offers exposure to U.S. companies that produce a wide range of consumer goods, including food, automobiles, and household goods by tracking the Dow Jones U.S. Consumer Goods Index. It holds about 99 stocks in its basket with Tesla occupying the top position at 15.7% allocation. The fund has amassed $689.2 million in its asset base while trades in a volume of about 16,000 shares. It charges 43 bps in annual fees and has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
Consumer Discretionary Select Sector SPDR Fund
XLY
This product offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. It is the largest and most-popular product in this space, with AUM of nearly $20.1 billion and an average daily volume of around 3.8 million shares. Holding 63 securities in its basket, Tesla takes the second spot with 13.4% of assets. The fund charges 12 bps in annual fees and has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
ARK Industrial Innovation 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 46 stocks, with TSLA occupying the top spot with 10.9% share. The product has accumulated $3.1 billion in its asset base and charges 75 bps in fees per year. It trades in volume of 482,000 shares a day on average (read:
Ride the Renewed Meme Stock Wave With This New ETF
).
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 48 stocks in its basket with Tesla occupying the top position at 10.2%. The ETF has amassed $6.3 billion in its asset base and charges 79 bps in annual fees. It trades in an average daily volume of 1.3 million shares.
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 $76.3 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 36,000 shares and has a Zacks ETF Rank #3.
ARK Innovation ETF
ARKK
This is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research. In total, the fund holds 51 securities in its basket with Tesla occupying the top position, accounting for 9.7% share. The product has gathered $25.3 billion in its asset base and charges 75 bps in fees per year from investors. It trades in a volume of 10.8 million shares per day on average (read:
5 ETFs Riding the Growth Comeback Euphoria
).
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