ETFs To Surge On Tesla's Blowout Q3

After the closing bell on Wednesday, Tesla Motors (TSLA - Free Report) cheered investors by reporting the best quarterly results in history. The electric carmaker easily topped Q3 earnings and revenue estimates. In fact, the company reported profit for the fifth consecutive quarter with record revenues driven by an uptick in vehicle deliveries and sales of environmental regulatory credits to other automakers.

Q3 Earnings in Focus

Adjusted earnings per share came in at 27 cents, easily beating the Zacks Consensus Estimate of 22 cents and doubling the year-ago earnings of 16 cents. Revenues jumped 39% year over year to a record $8.77 billion and edged past the Zacks Consensus Estimate of $8.28 billion.

Earlier this month, Tesla reported record deliveries for the third quarter. The company produced 145,036 (128,044 Model 3 and Y, and 16,992 Model S and X) vehicles and delivered 139.300 (124,100 Model 3 and Y, and 15,200 Model S and X) vehicles. The deliveries jumped 54% from Q2 and topped the previous record of 112,000 set in the fourth quarter of 2019 while production increased 76% from Q2. The robust performance came on the back of higher demand for its mass-produced Model 3 sedans.

For the full year, the electric carmaker is on pace to deliver about 500,000 vehicles, up 36% from last year. It increased the Model 3 production at its Shanghai plant to 250,000 vehicles a year — its targeted production rate. However, to meet the guidance, the company has to deliver a blowout Q4 quarter with 181,650 deliveries given that 318.350 cars have been delivered this year.

Given the robust results, shares of Tesla spiked as much as 4.5% in aftermarket trading on elevated volumes. The stock currently has a Zacks Rank #3 (Hold) and VGM Score of B. It belongs to a top-ranked Zacks industry (in the top 26%).

ETFs to Buy

Investors seeking to tap Tesla’s growth should buy ETFs having a substantial allocation to this luxury carmaker. We highlight six of them in detail below.

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