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Tesla Misses on Q4 Earnings, Vows to Return to Growth: ETFs to Buy
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Tesla (TSLA - Free Report) reported dismal fourth-quarter 2024 results, missing estimates for earnings and revenues. But the electric automaker pledged a return to growth in 2025. Shares of Tesla initially plunged 5% in after-market hours following the miss but reversed its losses to a gain of 4% on the company’s ambitious production plans.
Investors seeking to tap the opportune moment could focus on ETFs having a substantial allocation to this luxury carmaker. These include The Nightview Fund (NITE - Free Report) , Simplify Volt TSLA Revolution ETF (TESL - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and ARK Innovation ETF (ARKK - Free Report) .
Adjusted earnings per share came in at 73 cents, missing the Zacks Consensus Estimate by a couple of cents but improving from the year-ago earnings of 71 cents. Revenues grew 2% year over year to $25.71 billion but fell short of the Zacks Consensus Estimate of $27.50 billion.
Earlier this month, Tesla missed estimates for fourth-quarter deliveries and recorded its first year-over-year decline in full-year vehicle deliveries in the company's history (read: Tesla Slips on Q4 Delivery Miss: ETFs in Focus).
This leading electric carmaker delivered 495,570 (471,930 Model 3/Y and 23,640 other models) cars worldwide in the fourth quarter. Though the figure is up 2.3% from the year-ago quarter and marked the second consecutive quarter of year-over-year delivery growth, it came below consensus analyst forecasts of 498,000 deliveries, according to FactSet. The miss reflects a relatively aged product and increased availability of lower-priced vehicles globally ahead of the hyped introduction of the cheaper new model (Juniper) in early/mid-2025.
Tesla produced 459,445 (436,718 Model 3/Y and 22,727 other models) vehicles during the quarter. For 2024, Tesla delivered 1.789 million vehicles, slightly down from 1.8 million, while producing 1.773 million units. This is the first year-over-year decline for Tesla, underscoring new competition and slowing demand.
Tesla has made a solid comeback, especially after Trump's election victory, and reclaimed its trillion-dollar market cap. The EV maker is expected to benefit from Musk's proximity to Trump's administration during its second term. Trump's administration could help expedite regulatory approval for new versions of Tesla's self-driving software and for its autonomous "robotaxis" to hit the road.
Tesla forecasts a return to vehicle growth in 2025 due to advancements in vehicle autonomy and the launch of new products. It reiterated its plans for new vehicles, including "more affordable models," and is on track to start production in the first of 2025. Tesla also said its purpose-built robotaxi, the Cybercab, is scheduled for volume production in 2026, with fleet-testing of existing models happening "later this year."
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 5-year period. It holds 20 stocks in its basket, with Tesla occupying the top position at 20.2% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 4,000 shares. It has accumulated $26.5 million in its asset base since its launch on June 24 last year (read: Top Events of 2024 & ETF Predictions for 2025).
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 $22.6 million. TESL trades in an average daily volume of 44,000 shares (read: Buy the Dip in Tesla ETFs Amid Trump's Reversal of Pro-EV Policies?).
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of products or services, and technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials, and transportation. This approach results in a basket of 36 stocks, with Tesla occupying the top spot with a 13.9% share.
ARK Autonomous Technology & Robotics ETF has accumulated $999.8 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 129,000 shares a day on average.
Vanguard Consumer Discretionary ETF currently follows the MSCI US Investable Market Consumer Discretionary 25/50 Index and holds 298 stocks in its basket. Of these, Tesla occupies the second position with a 15.3% allocation. Broadline retail takes the largest share at 24.8%, and automobile manufacturers, restaurants and hotels, resorts & cruise lines retail round off the next three spots (read: Consumer Discretionary ETF Hits New 52-Week High).
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, whereas volume is moderate at nearly 55,000 shares a day. The product has managed about $6.8 billion in its asset base and carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of Intelligent Devices, Autonomous Mobility, Precision Therapies, Neural Networks, Next Gen Cloud, Digital Wallets, Digital Assets, Smart Contracts and Multiomic Technologies. The fund holds 34 securities in its basket, with Tesla occupying the top spot at 13.1%.
ARK Innovation ETF has gathered $6.5 billion in its asset base and charges 75 bps in fees per year from investors. It trades in an average daily volume of 8.4 million shares.
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Tesla Misses on Q4 Earnings, Vows to Return to Growth: ETFs to Buy
Tesla (TSLA - Free Report) reported dismal fourth-quarter 2024 results, missing estimates for earnings and revenues. But the electric automaker pledged a return to growth in 2025. Shares of Tesla initially plunged 5% in after-market hours following the miss but reversed its losses to a gain of 4% on the company’s ambitious production plans.
Investors seeking to tap the opportune moment could focus on ETFs having a substantial allocation to this luxury carmaker. These include The Nightview Fund (NITE - Free Report) , Simplify Volt TSLA Revolution ETF (TESL - Free Report) , ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report) , Vanguard Consumer Discretionary ETF (VCR - Free Report) and ARK Innovation ETF (ARKK - Free Report) .
See the Zacks Earnings Calendar to stay ahead of market-making news.
Q4 Earnings in Focus
Adjusted earnings per share came in at 73 cents, missing the Zacks Consensus Estimate by a couple of cents but improving from the year-ago earnings of 71 cents. Revenues grew 2% year over year to $25.71 billion but fell short of the Zacks Consensus Estimate of $27.50 billion.
Earlier this month, Tesla missed estimates for fourth-quarter deliveries and recorded its first year-over-year decline in full-year vehicle deliveries in the company's history (read: Tesla Slips on Q4 Delivery Miss: ETFs in Focus).
This leading electric carmaker delivered 495,570 (471,930 Model 3/Y and 23,640 other models) cars worldwide in the fourth quarter. Though the figure is up 2.3% from the year-ago quarter and marked the second consecutive quarter of year-over-year delivery growth, it came below consensus analyst forecasts of 498,000 deliveries, according to FactSet. The miss reflects a relatively aged product and increased availability of lower-priced vehicles globally ahead of the hyped introduction of the cheaper new model (Juniper) in early/mid-2025.
Tesla produced 459,445 (436,718 Model 3/Y and 22,727 other models) vehicles during the quarter. For 2024, Tesla delivered 1.789 million vehicles, slightly down from 1.8 million, while producing 1.773 million units. This is the first year-over-year decline for Tesla, underscoring new competition and slowing demand.
Tesla has made a solid comeback, especially after Trump's election victory, and reclaimed its trillion-dollar market cap. The EV maker is expected to benefit from Musk's proximity to Trump's administration during its second term. Trump's administration could help expedite regulatory approval for new versions of Tesla's self-driving software and for its autonomous "robotaxis" to hit the road.
Tesla forecasts a return to vehicle growth in 2025 due to advancements in vehicle autonomy and the launch of new products. It reiterated its plans for new vehicles, including "more affordable models," and is on track to start production in the first of 2025. Tesla also said its purpose-built robotaxi, the Cybercab, is scheduled for volume production in 2026, with fleet-testing of existing models happening "later this year."
ETFs to Tap
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 5-year period. It holds 20 stocks in its basket, with Tesla occupying the top position at 20.2% of its assets. The Nightview Fund charges 1.25% in annual fees and trades in an average daily volume of 4,000 shares. It has accumulated $26.5 million in its asset base since its launch on June 24 last year (read: Top Events of 2024 & ETF Predictions for 2025).
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 $22.6 million. TESL trades in an average daily volume of 44,000 shares (read: Buy the Dip in Tesla ETFs Amid Trump's Reversal of Pro-EV Policies?).
ARK Autonomous Technology & Robotics ETF (ARKQ - Free Report)
ARK Autonomous Technology & Robotics ETF is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of products or services, and technological improvement and advancements in scientific research related to energy, automation and manufacturing, materials, and transportation. This approach results in a basket of 36 stocks, with Tesla occupying the top spot with a 13.9% share.
ARK Autonomous Technology & Robotics ETF has accumulated $999.8 million in its asset base and charges 75 bps in fees per year. It trades in a volume of 129,000 shares a day on average.
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 298 stocks in its basket. Of these, Tesla occupies the second position with a 15.3% allocation. Broadline retail takes the largest share at 24.8%, and automobile manufacturers, restaurants and hotels, resorts & cruise lines retail round off the next three spots (read: Consumer Discretionary ETF Hits New 52-Week High).
Vanguard Consumer Discretionary ETF charges investors 10 bps in annual fees, whereas volume is moderate at nearly 55,000 shares a day. The product has managed about $6.8 billion in its asset base and carries a Zacks ETF Rank #3 (Hold) with a Medium risk outlook.
ARK Innovation ETF (ARKK - Free Report)
ARK Innovation ETF is an actively managed fund investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to the areas of Intelligent Devices, Autonomous Mobility, Precision Therapies, Neural Networks, Next Gen Cloud, Digital Wallets, Digital Assets, Smart Contracts and Multiomic Technologies. The fund holds 34 securities in its basket, with Tesla occupying the top spot at 13.1%.
ARK Innovation ETF has gathered $6.5 billion in its asset base and charges 75 bps in fees per year from investors. It trades in an average daily volume of 8.4 million shares.