ETFs to Ride High on Tesla's Robust Q1 Delivery Numbers

Amid the coronavirus crisis, Tesla Motors TSLA reported stronger-than-expected deliveries for the first quarter. The company produced 102,672 (87,282 Model 3 and Y, and 15,390 Model S and X) vehicles and delivered 88,400 (76,200 Model 3 and Y, and 12,200 Model S and X) vehicles. Though the delivery number is 21% down from the previous quarter, it is higher than 77,100 produced in the year-ago quarter.

The robust numbers were attributed to “record levels of production” from the new Gigafactory in Shanghai, China, which began operations in late 2019. Additionally, Model Y production started in January and deliveries began in March that has added to the strong numbers.

The number has been great given that automakers Fiat Chrysler FCAU, General Motors GM and Ford F posted steep first-quarter delivery declines over last year, citing coronavirus-related disruptions that forced customers to comply with social distancing guidelines (read: ETFs at Risk as US Consumer Sentiment Hits Near 3.5-Year Low).

As a result, shares of this electric-car maker popped up as much as 17% in the extended session on Apr 2 and jumped more than 14% in early pre-market trade. Tesla currently has a Zacks Rank #3 (Hold) and a Growth Score of A.

ETFs to Watch

The solid deliveries data has put the spotlight on ETFs having substantial allocation to this luxury carmaker. We have highlighted five of them below.

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 13.9% share. CARZ has a lower level of $12.4 million in AUM and charges 70 bps in fees per year. The product has a Zacks ETF Rank #3 with High risk outlook.

First Trust NASDAQ Clean Edge Green Energy Index Fund QCLN

This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $137.3 million. It charges 60 bps in fees per year and holds 42 securities with Tesla Motors taking the top spot at 12.1%. It has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: 7 Top-Ranked ETFs on Sale).

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 36 stocks with TSLA occupying the top spot with 10.2% share. The product has accumulated $150.4 million in its asset base and charges 75 bps in fees per year.

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 $30.1 million in its asset base and charges 58 bps in annual fees.

ARK Web x.0 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 41 stocks in its basket with Tesla occupying the top position at 10%. The ETF has amassed $444.7 million in its asset base and its expense ratio is 0.76% (read: ETFs Set to Benefit from Social Distancing, Stay-At-Home).

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Ford Motor Company (F) : Free Stock Analysis Report
 
General Motors Company (GM) : Free Stock Analysis Report
 
Tesla, Inc. (TSLA) : Free Stock Analysis Report
 
Fiat Chrysler Automobiles N.V. (FCAU) : 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
 
First Trust NASDAQ Clean Edge Green Energy ETF (QCLN): ETF Research Reports
 
MICRS-FANG+ (FNGS): ETF Research Reports
 
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