Shares of Elon Musk's Tesla (NASDAQ:
), the high-flying electric car maker, are off more than five
percent ahead of Wednesday's after-the-close second-quarter
earnings report. Analysts are expecting California-based Tesla
will post a loss of 20 cents per share on a 30 percent sequential
revenue drop. Tesla reported first-quarter sales of almost $562
With the shares up four-fold this year and a forward P/E ratio
of 133, well above that of Amazon (NASDAQ:
) or Netflix (NASDAQ:
), Tesla's doubters, of which there are plenty, are eager for the
company to disappoint Wall Street. Nearly 23 percent of Tesla's
shares are sold short
If Tesla surprises to the upside, the rally in the stock (and
) could be significant. The stock has been one of the most
heavily-shorted U.S. issues through much of 2013. With Tesla now
a "four bagger" year-to-date, how much more pain the shorts can
endure is up for debate. What is not debatable is that Tesla has
a significant impact on these ETFs.
Tesla Gets A Big ETF Promotion
Market Vectors Global Alternative Energy ETF (NYSE:
) The Market Vectors Global Alternative Energy ETF was
recently reverse split
, though this reverse split was not brought on by poor
performance. An almost 13 percent weight to Tesla, the largest
among ETFs, has ensured GEX has been a star performer this year
WITHOUT the benefit of the price-inflating reverse split.
GEX has been strong this year that it is third-best
non-leveraged ETF year-to-date. Some of the other funds on the
also include Tesla
among their holdings, proving Musk's company has been a key
driver of performance for these ETFs. Those other ETFs include
First Trust NASDAQ Clean Edge Green Energy Index Fund (NASDAQ:
) An almost 11 percent weight to Tesla has meant good things for
the First Trust NASDAQ Clean Edge Green Energy Index Fund as the
ETF is up 55 percent year-to-date and that is including
Wednesday's four percent decline.
In addition to Tesla, QCLN also features ample solar sector
exposure, which until today, had been helpful. First Solar
) and SunPower (NASDAQ:
), as just two examples, combine for nearly 12 percent of the
ETF's weight. How important has QCLN's status as a "Tesla ETF"
been to the fund? In May, it
had $37.3 million in assets under management
. As of Tuesday, that number was $63.1 million.
Other funds to consider: First Trust US IPO Index Fund (NYSE:
) with a 2.1 percent weight to Tesla. The First Trust NASDAQ
Global Auto Index Fund (NASDAQ:
) has a 3.5 percent to Tesla while the PowerShares WilderHill
Clean Energy Portfolio (NYSE:
) features a 2.8 percent weight to the stock.
For more on ETFs, click
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