Get Tesla Exposure Ahead of Earnings With ETF KARS

Shares of Tesla (TSLA) are up around 1% in midday trading Wednesday ahead of the company’s fourth-quarter earnings call after the closing bell.

Investors are anticipating updates on the firm’s profitability and outlook for global demand of electric vehicles. Notably, China’s BYD took the spot for the first time as leading EV seller during the fourth quarter, the Wall Street Journal reported. However, Tesla maintained its lead in EV sales for the full year.

Tesla’s stock has climbed more than 46% in the past year despite falling about 18% in the past month. Due to the stock’s volatility, investors may prefer to get broader exposure to the industry via an ETF.

See more: “Electric Vehicle ETFs Could Accelerate in 2024

How to Get ETF Exposure to Tesla

Investors can add exposure to Tesla via the KraneShares Electric Vehicles & Future Mobility Index ETF (KARS). The fund tracks the Bloomberg Electric Vehicles Index for a 72 basis point fee. The index takes a market-cap-weighted approach to EV production.

KARS includes companies engaged in the electric vehicle production, autonomous driving, shared mobility, lithium and/or copper production, lithium-ion/lead acid batteries, hydrogen fuel cell manufacturing, and electric infrastructure businesses.

Analysts have previously forecasted that EV sales could account for at least 20% of global automobile sales in 2024.

The fund holds 70 securities as of January 23 per ETF Database. Tesla is a top five holding, along with Nidec Corporation (6594), Aptiv (APTV), Panasonic Holdings Corporation (6752), and Contemporary Amperex Technology (300750)

The fund invests globally, holding companies based in China, the U.S., South Korea, Australia, Japan, and Germany, among others.

The fund tilts toward large caps (61%). However, it does offer exposure to midcap (37%) and small cap (3%) companies, according to ETF Database.

KARS has $114 million in assets under management.

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