ETFs In Focus On Tesla Q4 Earnings Beat, Model 3 Target

After the closing bell on Wednesday, Tesla Motors (TSLA - Free Report) reported better-than-expected results for the fourth quarter of 2017. The electric car-maker outpaced the earnings estimate and is on track to meet its Model 3 production target.

Tesla Q4 in Focus

Adjusted loss per share came in at $3.04, narrower than the Zacks Consensus Estimate of a loss of $3.19 but wider than the year-ago loss of 69 cents per share. Revenues climbed 44% to $2.288 billion and fell shy of the Zacks Consensus Estimate of $3.299 billion.

Tesla delivered 29,967 vehicles (28,425 Model S and Model X combined, and 1,542 Model 3) during Q4, up 30% from the year-ago quarter. The Model 3 production was far below analysts’ expectation of 4,100 vehicles hurt by battery issues. The automaker expects to produce 2,500 Model 3 cars per week by the end of the first quarter and accelerate it to 5,000 a week by the end of the second quarter. Additionally, it targets 100,000 Model S and Model X deliveries for this year.

Tesla further reiterated its goal to produce 1 million vehicles annually by 2020 and plans to make capital investments related to the upcoming Model Y SUV toward the end of this year.

The results pushed Tesla shares higher as much as 2% in aftermarket hours on elevated volume. Tesla currently has a Zacks Rank #3 (Hold) and a VGM Style Score of F.

ETFs to Watch

The smooth trend is expected to continue in the ETF world for funds having substantial allocation to this luxury carmaker. Below we highlight five ETFs that could be great plays for investors to tap Tesla in the coming days.

VanEck Vectors Global Alternative Energy ETF (GEX - Free Report)

This ETF tracks the Ardour Global Index Extra Liquid, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 31 stocks in its basket with AUM of $86 million, while charges 62 bps in fees per year. Average daily volume is paltry at about 5,000 shares. Tesla occupies the third position in the basket with 9.6.2% allocation. In terms of country exposure, the fund is skewed toward the United States with 56.5% share, while Denmark and China round off the top three spots.

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