Yahoo Finance Tesla Delivers Record Q4 But Misses View: ETFs in Focus
Tesla Motors TSLA reported record deliveries for the fourth quarter but fell short of the analysts’ estimates due to logistics problems, slowing demand, rising interest rates and fears of recession. The miss has only added to the company’s pains of share price slide, surging inflation and an economic slowdown in China.
This has put the ETFs having a substantial allocation to this luxury carmaker like MeetKevin Pricing Power ETF PP, Vanguard Consumer Discretionary ETF VCR, Consumer Discretionary Select Sector SPDR Fund XLY, Fidelity MSCI Consumer Discretionary Index ETF FDIS, Simplify Volt Robocar Disruption and Tech ETF VCAR and MicroSectors FANG+ ETN FNGS in focus for this week.
The company delivered 405,278 (388,131 Model 3 and Y, and 17,147 Model S and X) cars worldwide in the fourth quarter. This is up 31.5% from the year-ago quarter and 18.1% from the prior quarter. The electric carmaker produced 439,701 (419,088 Model 3 and Y, and 20,613 Model S and X) vehicles during the quarter.
The fourth quarter was extremely challenging for Tesla. This is especially true as COVID outbreaks in China caused the company to temporarily suspend and reduce production at its Shanghai factory. Additionally, the electric carmaker offered steep price cuts and other promotions in the United States, China and elsewhere in order to spur demand that has put pressure on its margins (read: Tesla Revenues Miss in Q3 Earnings Put These ETFs in Focus).
For 2022, the electric carmaker delivered a record 1.31 million electric vehicles, up 40% from 2021. It has ramped up production after opening new factories in Texas, Shanghai and Berlin.
Tesla's stock tumbled 65% in 2022, its worst year since going public in 2010 and wiping out more than $700 billion in market cap. There are growing fears that demand issues stemming from an uncertain economy would dent the company's target to grow deliveries by 50% annually.
Tesla currently has a Zacks Rank #4 (Sell) and belongs to a bottom-ranked Zacks industry (in the bottom 30%). However, the stock boasts a top Growth and Momentum Score of A each.
ETFs in Focus
MeetKevin Pricing Power ETF (PP)
MeetKevin Pricing Power ETF is an actively managed ETF that seeks to achieve its investment objective by investing primarily in the U.S.-listed equity securities of Innovative Companies that, in Kevin’s view, have more “pricing power” than their peers. The fund holds a small basket of 17 stocks, with Tesla occupying the top position at 26%.
MeetKevin Pricing Power ETF is newly debuted in the space at the end of November and has accumulated $10.1 million in its asset base in a month. It charges 77 bps in annual fees and trades in a lower volume of 55,000 shares a day on average.
Vanguard Consumer Discretionary ETF (VCR)
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 315 stocks in its basket. Of these, Tesla occupies the second position with an 11.9% allocation. Internet & direct marketing retail takes the largest share at 22.9%, while automobile manufacturers, restaurants and home improvement retail round off the next three spots (read: Consumer Confidence Rebounds in December: ETFs to Buy).
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, while volume is moderate at nearly 1200,000 shares a day. The product has managed about $3.7 billion in its asset base and carries a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.
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.
Consumer Discretionary Select Sector SPDR Fund is the largest and most popular product in this space, with AUM of $12.6 billion and an average daily volume of around 4.7 million shares. Holding 56 securities in its basket, Tesla takes the second spot with 10.5% of assets. Consumer Discretionary Select Sector SPDR Fund charges 10 bps in annual fees and has a Zacks ETF Rank #2 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 327 stocks in its basket. Of these, TSLA takes the second spot with an 11.6% share.
Fidelity MSCI Consumer Discretionary Index ETF has amassed $932.6 million in its asset base while trading in a good volume of around 77,000 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 #2 with a Medium risk outlook.
Simplify Volt Robocar Disruption and Tech ETF (VCAR)
Simplify Volt Robocar Disruption and Tech ETF is an actively managed ETF seeking concentrated exposure to the leader of autonomous driving technology. It employs a call option overlay to seek boosts in performance during extreme moves up in Tesla while holding a tech index for diversification and put options as a hedge.
Simplify Volt Robocar Disruption and Tech ETF charges investors 0.95% in annual fees. It has accumulated $2.6 million in its asset base while trading in an average daily volume of 3,000 shares.
MicroSectors FANG+ ETN (FNGS)
MicroSectors FANG+ 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 a 10% share (read: Tech ETFs 2022 Low-Down: Dividend Wins, Cryptocurrency Loses).
MicroSectors FANG+ ETN has accumulated $46.3 million in its asset base and charges 58 bps in annual fees. It trades in an average daily volume of 24,000 shares and has a Zacks ETF Rank #3 (Hold).
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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 Reports
The Meet Kevin Pricing Power ETF (PP): ETF Research Reports
MicroSectors FANG ETN (FNGS): ETF Research Reports
Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports
