Published on 24 Apr 2024 on Zacks via Yahoo Finance
Tesla Rises on Future EV Plans Despite Q1 Miss: ETFs in Focus
Tesla Motors TSLA reported weaker-than-expected first-quarter 2024 results, missing estimates on both fronts. The electric automaker continued its losing streak for the third consecutive quarter and posted the biggest revenue drop since 2012.However, the electric carmaker infused optimism, signaling its plans to move sooner than expected with the production of lower-priced models and the continued investment in future “robotaxis.” This has helped Tesla to rebound from the lowest level in 15 months. Shares of Tesla spiked about 13% at the close in after-market hours.Given the growth potential, investors should buy ETFs having a substantial allocation to this luxury carmaker. These include Consumer Discretionary Select Sector SPDR Fund XLY, Simplify Volt Robocar Disruption and Tech ETF VCAR, MicroSectors FANG+ ETN FNGS, Vanguard Consumer Discretionary ETF VCR and ARK Autonomous Technology & Robotics ETF ARKQ.
Q1 Earnings in Focus
Adjusted earnings per share came in at 45 cents, missing the Zacks Consensus Estimate of 46 cents and declining from the year-ago earnings of 85 cents. Revenues declined 9% year over year to $21.03 billion and fell short of the Zacks Consensus Estimate of $22.15 billion. The revenue decline marks the steepest drop since 2012.Earlier this month, Tesla delivered 386,810 cars (369,783 Model 3 and Y, and 17,027 Model S and X) worldwide in the first quarter, down 8.5% year over year. The electric carmaker produced a record 433,371 vehicles (412,376 Model 3 and Y, and 20,995 Model S and X) during the quarter, down 1.7% from the year-ago quarter. The decline was due to “the early phase of the production ramp-up” of its updated Model 3 at its Fremont factory and plant shutdowns resulting from shipping diversions caused by the Red Sea conflict and an arson attack at Gigafactory Berlin, which led to a weeklong production halt in its Germany factory (read: Tesla Stock Sinks After a Big Q1 Delivery Miss: ETFs in Focus).