ETFs In Focus On Tesla's Mixed Q4 Results

Tesla Inc. (TSLA) released its fourth-quarter 2016 results after market hours on February 22, 2017, posting revenues of $2.28 billion, ahead of the Zacks Consensus Estimate of $2.201 billion. However, the company reported a loss of $1.25 per share, wider than the Zacks Consensus Estimate of a loss of $1.19 per share.This number excludes 47 cents from non-recurring items. Concurrent with the release, Tesla also announced that CFO, Jason Wheeler will be resigning in April 2017.


Initial production of the company’s Model 3 is on track to begin this July while volume production is expected by September. Tesla expects capital expenditure between $2 billion and $2.5 billion ahead of the start of Model 3 production. Tesla expects to deliver 47,000 to 50,000 Model S and Model X vehicles combined in the first half of 2017, which represents vehicle delivery growth of 61% to 71% compared with the year-ago period.

Currently, Tesla has a Zacks Rank #4 (Sell).  The stock was up 1.52% to $277.67 in after-hours trading following the earnings release owing to the revenue beat.

Given the earnings report and investors’ reaction, we have selected the following ETFs that are heavily invested in the company. If the stock gains traction ahead on the rollout of the Model 3 electric sedan, positions in these funds can be beneficial for investors (see: all the Alternative Energy ETFs here).

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

This ETF tracks the Ardour Global Index, focusing on companies that are primarily engaged in the business of alternative energy. It also provides good diversification in the sense that it’s well divided between large, medium and small cap companies.

The fund holds about 33 stocks in its basket with an AUM of $64.9 million while charging 62 bps in fees per year. The fund has an average daily volume of about 2,500 shares. Tesla Motors occupies the top position in the basket with about 12.3% allocation.

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Disclosure: contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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