Tesla's Q4 Results Could Shake Up These 3 ETFs

With Tesla Inc's TSLA fourth-quarter earnings set to be unveiled after the market closes Wednesday, all eyes are on how the electric carmaker's performance might affect the ETFs with large allocations in the company.

Tesla has been a powerhouse for several high-profile ETFs, and as it prepares to report its latest results, these funds are drawing investor attention.

Simplify Volt TSLA Revolution ETF TESL employs an active management strategy focused on capturing Tesla's price movements while managing downside risks with advanced options. It has $20.8 million in assets and a 1.20% expense ratio. The ETF’s price has returned 131.58% in the past year.

Another fund closely watching Tesla is the ARK Autonomous Technology & Robotics ETF ARKQ, which focuses on companies benefiting from technological advancements in energy, automation, and transportation. Tesla, holding a dominant 13.7% of the fund, leads a basket of 36 stocks. This fund charges a fee of 0.75%.

Also noteworthy is the Vanguard Consumer Discretionary ETF VCR, which allocates about 11% of its assets to Tesla. This ETF, charges a mere 0.10% annual fee.

These ETFs will be keenly watching the company's upcoming earnings to gauge the stock’s next move.

Also Read: Tesla Faces Boycott Call In Poland Over Musk’s WWII Comments: ‘No Normal Pole Should Buy’

Tesla's Q4 Earnings Preview

Tesla has been riding high, with shares soaring about 51% over the past three months.

Tesla’s fourth-quarter revenues are expected to come at $27.13 billion, up from $25.17 billion in last year’s fourth quarter, and earnings per share at 74 cents, up from 71 cents, according to data from Benzinga Pro.

At this point, it is important to recall that Tesla’s delivery numbers missed analyst expectations for the fourth quarter, with the company delivering 495,570 vehicles—just shy of the 498,000 expected.

The company’s delivery shortfall marked the first-ever year-over-year decline in its full-year vehicle deliveries.

The rollout of cheaper EV models and investments in AI projects further bolster Tesla's long-term prospects, even as the company faces increased competition and a challenging global market.

Tesla's upcoming results are crucial not just for the company itself, but also for the ETFs heavily invested in its stock.

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Image created using artificial intelligence via Midjourney.