Tesla Inc. (NASDAQ:TSLA) saw its stock soar by over 10% on Monday, marking the largest single-day gain since the close of January 2023.
The price surge increased the EV maker's market cap by $80 billion in just one day. Tesla's valuation hit the $870 billion mark, leaving companies like Warren Buffett's Berkshire Hathaway Inc. (NYSE:BKR) (NYSE:BKR) and Meta Platforms Inc. (NASDAQ:META) in its rearview mirror.
Chart: Tesla Inc Notches One of The Best-Performing Session In 2023
Morgan Stanley Turns Bullish On Tesla
The catalyst: Morgan Stanley's analyst Adam Jonas shifted his stance on Tesla, moving the stock from Equalweight to Overweight. He also hiked the price target from $250 to $400, which is nearly 50% higher than current market prices.
The reason: Tesla's Dojo supercomputer. Morgan Stanley sees the potential of Dojo adding $500 billion to Tesla's enterprise value. This optimism is rooted in the belief that the supercomputer will expedite adoption rates in mobility, particularly robotaxis, and network services.
Morgan Stanley emphasized the importance of identifying scalable, high-potential ventures that haven't been fully factored in by the market. The analysts believe Tesla's Dojo fits this bill perfectly.
According to the investment bank, Tesla's groundbreaking supercomputing tech sets new standards. Their custom-designed chip, combined with specialized hardware and software, could offer a sixfold cost reduction per computing power unit, thanks to a highly efficient system.
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ETFs Soaring On Tesla Rally
When discussing exchange-traded funds with significant Tesla exposure, many instantly think of Cathie Wood's Ark Innovation ETF (NYSE:ARKK) as the primary Tesla-heavy fund.
This perception, however, isn't entirely accurate. While ARKK boasts a notable chunk of its portfolio dedicated to Tesla – being Wood's premier investment – there are ETFs out there with an even heftier Tesla allocation.
Leading the pack with the most significant daily gain is The Meet Kevin Pricing Power ETF (NYSE:PP), which surged by 3.2% on Monday. This fund dedicates roughly a quarter of its assets to Tesla.
Hot on its heels is the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). With an 18.6% Tesla stake, it witnessed a 2.8% daily uptick.
The Vanguard Consumer Discretionary ETF (NYSE:VCR) clinched the third spot, registering a 2.3% daily ascent.
Interestingly, Wood's other offering, the ARK Autonomous Technology & Robotics ETF (NYSE:ARKQ), found itself in the seventh position. It climbed 2.1% for the day, powered by its 13% Tesla allocation.
Factoring in the Tesla shares sprinkled across both ARKK and ARKQ, these funds' market valuation swelled by $100 million in just one day.
Table: Tesla-Heavy Exchange Traded Funds
ETF Name | ETF Ticker | Fund Style | Fund Focus | Weight% | Shares Held | Market Value |
|---|---|---|---|---|---|---|
Tidal ETF Trust II – The Meet Kevin Pricing Power ETF | PP | Strategy | Theme | 25.81% | 40,077 | $11.0M |
The Select Sector SPDR Trust – The Consumer Discretionary | XLY | Sector | Consumer Discretio... | 18.58% | 13,444,761 | $3,683.2M |
Vanguard World Fund – Vanguard Consumer Discretionary | VCR | Sector | Consumer Discretio... | 15.06% | 3,288,595 | $900.9M |
ProShares Trust – ProShares Ultra Consumer Discretionary | (NYSE:UCC) | Sector | Consumer Discretio... | 14.71% | 9,722 | $2.7M |
Fidelity Covington Trust – Fidelity MSCI Consumer Discretionary Index ETF | (NYSE:FDIS) | Sector | Consumer Discretio... | 14.61% | 722,735 | $198.0M |
Direxion Shares ETF Trust – Direxion Daily Consumer Discretionary ETF | (NYSE:WANT) | Sector | Consumer Discretio... | 13.57% | 19,258 | $5.3M |
ARK ETF Trust – ARK Autonomous Technology & Robotics ETF | ARKQ | Strategy | Theme | 13.29% | 562,808 | $154.2M |
Simplify Exchange Traded Funds – Simplify Volt Robocar Disruption And Tech ETF | (NYSE:VCAR) | Strategy | Theme | 11.56% | 1,898 | $0.5M |
iShares Trust – iShares Global Consumer Discretionary ETF | (NYSE:RXI) | Sector | Consumer Discretio... | 10.82% | 144,369 | $39.6M |
ARK ETF Trust – ARK Innovation ETF | ARKK | Strategy | Theme | 10.52% | 3,278,033 | $898.3M |
First Trust Exchange-Traded Fund – First Trust NASDAQ Clean Edge Green Energy Index Fund | (NYSE:QCLN) | Strategy | Theme | 10.31% | 550,514 | $150.9M |
Tidal ETF Trust – SoFi Social 50 ETF | SFYF | Size and Style | Large Cap | 10.21% | 6,368 | $1.7M |
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