Yahoo Finance Tesla's Supercomputer Dojo Propels These ETFs
With the possibility of opening new accessible markets, Tesla’s TSLA supercomputer, Dojo could boost its market capitalization by nearly $600 billion.
According to Morgan Stanley analyst, Adam Jonas, the supercomputer used to train AI models for automatic cars could give Tesla the worlds largest electric vehicle (EV) manufacturer, an “asymmetric advantage”, resulting in 76% growth in market value, as quoted on Reuters.
More Into the Upgrade
Tesla commenced production of Dojo in July and intends to invest over $1 billion through the coming year. Morgan Stanley upgraded its assessment of Tesla's stock from "equal-weight" to "overweight" and designated it as their "top pick.”
According to the Reuters article, Tesla is expected to hit Morgan Stanley’s forecast target of $400, surging nearly 60% from its current price levels within 12-18 months. This rally in the EV maker’s share price is likely to result in Tesla reaching a market capitalization of $1.39 trillion, from its current valuation of $789 billion.
Jonas has revised his revenue estimate for Tesla's network services business upward to $335 billion by 2040 from his earlier projection of $157 billion, with the unit constituting over 60% of Tesla's core earnings.
UAW Strike to Favor Tesla?
Per Yahoo Finance, with the United Auto Workers (UAW) likely to go on a strike, the timing of the strike favors Tesla. During a period when traditional automakers are intensifying their efforts in the EV space, the strike could disrupt the supply of General Motors GM, Ford F and Stellantis STLA, or Detriot’s Big 3. According to analyst Sam Fiorani, as quoted on Yahoo Finance, this could result in sales being pushed to non-union brands like Tesla.
China Car Sales Give Further Boost
According to a Reuters article, based on China Passenger Car Association (CPCA) data, Tesla's share of the China EV market nearly doubled in August to 13.2% from 7.5% in July, boosted by substantial discounts, reaching 64,694 cars sold in the month of August.
ETFs in Focus
Investors who hold a positive outlook on the growth of Tesla can consider investing in the following ETFs that offer exposure to the electric car manufacturer.
Meet Kevin Pricing Power ETF (PP)
Meet Kevin Pricing Power ETF employs an active strategy, investing primarily in the U.S.-listed equity securities of innovative companies. Having gathered an asset base of $39.4 million and charging an annual fee of 0.77%, PP has a basket of 17 securities.
Meet Kevin Pricing Power ETF has an exposure of 25.76% in Tesla, with the EV maker being the top allocation of the fund. PP has 85.66% of its assets parked in large-cap securities, reducing the volatility surrounding the fund. The fund has gained 39.3% year to date (as of Aug 8).
Consumer Discretionary Select Sector SPDR Fund (XLY)
Consumer Discretionary Select Sector SPDR Fund seeks to track the Consumer Discretionary Select Sector Index, with a basket of 52 securities. The fund has amassed an asset base of $17.98 billion and charges an annual fee of 0.10%.
Consumer Discretionary Select Sector SPDR Fund has an exposure of 18.58% in Tesla and has a Zacks ETF Rank #1 (Strong Buy). The fund invests 96.72% of its assets in large-cap securities, reducing the volatility surrounding the fund and has added 31.31% year to date (as of Aug 8).
Vanguard Consumer Discretionary ETF (VCR)
Vanguard Consumer Discretionary ETF seeks to track the MSCI US Investable Market Consumer Discretionary 25/50 Index, with a basket of 309 securities. The fund has gathered an asset base of $5.16 billion and charges an annual fee of 0.10%.
Vanguard Consumer Discretionary ETF has an exposure of 14.96% in Tesla and has a Zacks ETF Rank #1 (Strong Buy). Investing 68.2% of its assets in large-cap securities, VCR has added 30.09% year to date (as of Aug 8).
Fidelity MSCI Consumer Discretionary Index ETF (FDIS)
Fidelity MSCI Consumer Discretionary Index ETF seeks to track the MSCI USA IMI Consumer Discretionary Index by investing at least 80% of assets in securities included in the index. The fund has a basket of 295 securities and has amassed an asset base of $1.25 billion. FDIS charges an annual fee of 0.08%.
Fidelity MSCI Consumer Discretionary Index ETF has an exposure of 14.27% in Tesla and has a Zacks ETF Rank #2 (Buy). FDIS invests 82.91% of its assets in large-cap securities, reducing the volatility surrounding the fund. FDIS has added 30.11% year to date (as of Aug 8).
ARK Autonomous Technology & Robotics ETF (ARKQ)
ARK Autonomous Technology & Robotics ETF employs an active strategy with a basket of 37 securities. The fund has gathered an asset base of $1.06 billion and charges an annual fee of 0.75%.
ARK Autonomous Technology & Robotics ETF has an exposure of 13.59% in Tesla, with the EV maker being the top allocation of the fund. ARKQ has 56.98% of its assets parked in large-cap securities, reducing the volatility surrounding the fund. The fund has gained 32.85% year to date (as of Aug 8).
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Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports
Vanguard Consumer Discretionary ETF (VCR): ETF Research Reports
ARK Autonomous Technology & Robotics ETF (ARKQ): ETF Research Reports
Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports
The Meet Kevin Pricing Power ETF (PP): ETF Research Reports
Stellantis N.V. (STLA) : Free Stock Analysis Report
