ETFs To Ride High On Tesla's Robust Q1 Delivery Numbers

Amid the coronavirus crisis, Tesla Motors (TSLA - Free Report) 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 - Free Report), General Motors (GM - Free Report) and Ford (F - Free Report) posted steep first-quarter delivery declines over last year, citing coronavirus-related disruptions that forced customers to comply with social distancing guidelines.

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 - Free Report)

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 - Free Report)

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.

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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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