After being hit by disappointing third quarter results and three
Model S fires in recent months, the high-end electric car
Tesla Motors (
, finally got a reason to cheer. The company reported strong sales
for its Model S sedan for the fourth quarter, at the Detroit Auto
Tesla Motor Fires Hit Lithium ETF
Solid 4Q Sales and Outlook
The automaker sold 6,900 Model S vehicles in the final quarter of
2013, up 15% from its own expectation and 25% from the third
quarter. This also marked the highest sales in the company's
Based on stronger-than-expected sales, Tesla issued a 'recall'
action (software update) for 29,222 Model S sedans from 2013 to
provide upgraded wall adapter and charging software in order to
prevent overheating and possible fires.
Going forward in 2014, Tesla expects to double its sales and
service footprint globally and intends to offer the new Model X SUV
by the year end. Further, the company will start selling the Model
S in China early this year and deliver more vehicles to Europe
Robust Car Sales Bring Auto ETF in Focus
This news has created optimism on the company's growth outlook and
Tesla stock. TSLA shares jumped nearly 16%, representing the
biggest one-day increase since December 3rd.
Given the surge in the stock price, the ETFs having highest
allocation to this auto company enjoyed huge gains on the day and
are likely to be in focus in the coming days. Below, we have
highlighted two ETFs for investors that really benefited from this
solid sales figure, and the continuation of the TSLA growth story:
First Trust NASDAQ Clean Edge Green Energy Index Fund (
This fund tracks the NASDAQ Clean Edge Green Energy Index and
manages assets worth $11.5 million. It charges 60 bps in fees per
year while volume is light suggesting wide bid/ask spread (read:
Will the Clean Energy ETF Surge Continue in
In total, the product holds 43 securities in its basket. Out of
these, Tesla occupies the top position in the basket with 8.34% of
assets. Technology firms dominate this ETF, accounting for over
three-fifths of the assets, while oil & gas and industrials
make up for double-digit share each.
QCLN gained 4.11% on the session and is up about 4.58%
year-to-date. The fund has a Zacks ETF Rank of 1 or 'Strong Buy'
with High risk outlook.
Market Vectors Global Alternative Energy ETF (
This ETF tracks the Ardour Global Index, focusing on companies that
are primarily engaged in the business of alternative energy. The
fund holds about 31 stocks in its basket with AUM of $92.3 million
while charging 62 bps in fees per year. Average daily volume is
also paltry for this fund (see:
all the Alternative Energy ETFs here
Here, TSLA takes the second spot in the basket with 9.60%
allocation. From a sector perspective, industrials take the largest
share with 45.3%, closely followed by information technology
(27.2%) and utilities (13.6%).
In terms of country exposure, the fund is skewed toward the U.S.
with 61.4% share, while China, Denmark, Italy and many others
receive minor allocations.
The ETF added 3.55% on the session, and is up 4.34% so far this
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MKT VEC-GLBL AE (GEX): ETF Research Reports
NASDAQ-CL EDG G (QCLN): ETF Research Reports
TESLA MOTORS (TSLA): Free Stock Analysis Report
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