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Tesla Inc. (TSLA - Free Report) reported a decline in global deliveries once again for the second quarter of 2025, marking its second consecutive quarterly drop. This has deepened concerns about sliding demand and rising competition in the global EV race. However, Tesla shares rose 5% following the weak delivery report, underscoring its solid growth prospects.

This put ETFs with a substantial allocation to the luxury carmaker in focus. These funds include Simplify Volt TSLA Revolution ETF (TESL - Free Report), Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report), Vanguard Consumer Discretionary ETF (VCR - Free Report), The Nightview Fund (NITE - Free Report), and Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report).

Tesla Q2 Delivery Numbers

The leading electric carmaker delivered 384,122 (373,728 Model 3/Y and 10,394 other models) cars worldwide in the second quarter. The figure declined 13.5% from the year-ago quarter, marking the worst year-over-year decline in deliveries in the company’s history. Wall Street analysts were expecting Tesla to report deliveries of around 387,000, according to FactSet.

Tesla produced 410,244 (396,835 Model 3/Y and 13,409 other models) vehicles during the quarter. 

Tesla continues to face rising challenges in 2025, most notably from an influx of next-generation EVs from Chinese automakers. These competitors are gaining traction globally with more frequent model updates and lower price points, putting pressure on Tesla’s market share. There’s also been a political backlash against CEO Elon Musk, with waves of protests against Tesla weighing on the company’s reputation and impacting sales.

Solid Growth Ahead?

The electric carmaker seems well-positioned, with many analysts seeing robotaxis as a trillion-dollar addressable market. Tesla launched the long-anticipated driverless robotaxi service in Austin, TX, last month, a pivotal move in the electric carmaker’s push toward full autonomy.

The rollout has begun with 10 to 20 autonomously operating Model Y vehicles in the city, with plans for a rapid expansion to additional cities and a potential fleet of hundreds of thousands of vehicles by the end of next year. Wedbush analyst Dan Ives noted that robotaxis and Tesla’s self-driving software could potentially double the company’s market capitalization by the end of 2026. 

Tesla's move is seen as a bold attempt to prove real-world viability in an industry still grappling with safety concerns, technical challenges, and regulatory scrutiny. The company is increasingly focusing on next-generation technologies, including autonomous driving and humanoid robotics. Musk has stated his ambition to expand the service to multiple U.S. cities by the end of this year, aiming for “millions of Teslas operating fully autonomously in the second half of next year.”

ETFs in Focus

Presented below is a brief overview of the previously-mentioned ETFs.

Simplify Volt TSLA Revolution ETF (TESL - Free Report)  

Simplify Volt TSLA Revolution ETF uses an active management strategy to capture the potential of Tesla’s stock price movements while implementing an advanced options overlay to manage downside risks. It has an expense ratio of 1.20% and AUM of $30.9 million. The ETF trades in 44,000 shares per day on average. 

Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)

Consumer Discretionary Select Sector SPDR Fund offers exposure to the broad consumer discretionary space by tracking the Consumer Discretionary Select Sector Index. Holding 51 securities in its basket, Tesla takes the second spot with 16% of the assets.

The fund is the largest and most popular product in this space, with AUM of $22.7 billion. Additionally, it charges 8 bps in annual fees. It trades in an average daily volume of 4.5 million shares, and it has a Zacks ETF Rank #3 (Hold) rating with a Medium risk outlook.

Vanguard Consumer Discretionary ETF (VCR - Free Report)

Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 296 stocks in its basket. Of these, Tesla occupies the second position with a 16.1% allocation.

The ETF charges investors 9 bps in annual fees, and volume is good at nearly 73,000 shares a day. The product has managed about $6.1 billion in its asset base, and it carries a Zacks ETF Rank #3 (Hold) rating with a Medium risk outlook.

The Nightview Fund (NITE - Free Report)

The Nightview Fund is an actively managed fund seeking long-term capital appreciation with the goal of outperforming the S&P 500 Total Return Index over a rolling five-year period. It holds 22 stocks in its basket, with Tesla occupying the top position at 14.5% of its assets.

The Nightview Fund charges 1.25% in annual fees, and it trades in an average daily volume of 5,000 shares. It has also accumulated $26.4 million in its asset base.

Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report)

Fidelity MSCI Consumer Discretionary Index ETF tracks the MSCI USA IMI Consumer Discretionary Index, holding 259 stocks in its basket. Of these, TSLA takes the second spot with a 14.7% share.

The ETF has amassed $1.8 billion in its asset base while trading with a good volume of around 121,000 shares a day on average. The ETF charges 8 bps in annual fees from investors, and it has a Zacks ETF Rank #4 (Sell) rating with a Medium risk outlook.

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