Published on 27 Jan 2023 on Zacks via Yahoo Finance
ETFs to Buy on Tesla's Record-Breaking Q4 Results
Tesla Motors TSLA reported record-breaking Q4 results, wherein it beat both earnings and revenue estimates. The company posted record quarterly revenues, operating income and net income in its history.Shares of Tesla rallied about 10% on Jan 26 trading day. Impressed with the robust results, many analysts raised the target price on the stock, spreading optimism in the company’s growth prospect. Investors seeking to ride the bullishness could invest in ETFs having a substantial allocation to this luxury carmaker.These include MeetKevin Pricing Power ETF PP, ARK Autonomous Technology & Robotics ETF ARKQ, Consumer Discretionary Select Sector SPDR Fund XLY, Simplify Volt Robocar Disruption and Tech ETF VCAR and MicroSectors FANG+ ETN FNGS that look like solid picks to play Q4 strength.
Q4 Earnings in Focus
Adjusted earnings per share came in at $1.19, easily beating the Zacks Consensus Estimate of $1.09 and improving 40% from year-ago earnings. Revenues jumped 37.2% year over year to a record $24.3 billion and edged past the Zacks Consensus Estimate of $23.81 billion (read: 5 Sector ETFs to Play on Upbeat Q4 Revenue Growth).The company delivered 405,278 (388,131 Model 3 and Y, and 17,147 Model S and X) cars worldwide in the fourth quarter. This is up 31.5% from the year-ago quarter and 18.1% from the prior quarter. The electric carmaker produced 439,701 (419,088 Model 3 and Y, and 20,613 Model S and X) vehicles during the quarter.The fourth quarter was extremely challenging for Tesla. This is especially true as COVID outbreaks in China caused the company to temporarily suspend and reduce production at its Shanghai factory. Additionally, the electric carmaker offered steep price cuts and other promotions in the United States, China and elsewhere in order to spur demand that has put pressure on its margins.For 2022, the electric carmaker delivered a record 1.31 million electric vehicles, up 40% from 2021. It has ramped up production after opening new factories in Texas, Shanghai and Berlin.