Ride On Surging Tesla With These ETFs

Tesla Motors (TSLA - Free Report) has become an investors’ darling and is riding high setting new milestones. This is especially true as the electric carmaker has rallied nearly double digits this week to hit a record high of $304.81.

With this surge, Tesla has become the No. 2 car company in the U.S. with a market capitalization of $49.5 billion, easily surpassing Ford Motor Co. (F - Free Report) having a market cap of $44.4 billion. The race to the big three carmakers in America auto industry has now become fierce with Tesla just $1.8 billion behind General Motors (GM - Free Report) , which saw shares plunging post disappointing sales in March. General Motors is currently worth $51.3 billion.

Tesla’s impressive performance is backed by better-than-expected first-quarter production and delivery numbers. Tesla delivered a record 25,000 vehicles (13,450 Model S and 11,550 Model X), up 69% year over year, during the first quarter. It produced a record 25,418 vehicles and had 4,650 vehicles in transit at the end of the quarter.

The automaker is on track to deliver 47,000–50,000 vehicles in the first half of 2017. Additionally, the company expects to produce 5,000 cars per week later in the year once production of the new Model 3 begins in July.

As Tesla is all about electric cars, its production and delivery plans matter most to investors. Currently, Tesla has a Zacks Rank #3 (Hold) with a VGM Style Score of F but has a poor Zacks Industry Rank (in the bottom 11%). Its earnings and revenues are expected to grow 48.17% and 58.55%, respectively, this year versus the industry averages of 6.30% and 1.55%. Further, its long-term growth rate is also inspiring at 30%, double the industry average growth of 14.20%. All these suggest smooth trading for the carmaker in the coming months.

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Disclosure: None.

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