ETFs to Watch as Tesla Lags Q3 Earnings, Views Cybercab Production in '26

Shares of Tesla (TSLA) dropped more than 5% in early trading on Oct. 23 (as reported by Yahoo Finance), after the company’s third-quarter 2025 earnings missed analysts’ expectations. In particular, its results reflected a 40% slump in operating profit, with higher tariffs and research and development (R&D) expenses for AI projects playing a vital role in this slump. However, the company ultimately ended the last trading session with a gain of 2.3%, in spite of the initial fall in the early morning trading. This was probably due to the overall market optimism surrounding the recent launch of new vehicles like Model 3 and Model Y in multiple nations. Given the strong outlook for Tesla’s growing manufacturing base, investors may want to monitor ETFs with significant exposure to the electric vehicle (EV) leader. These include Consumer Discretionary Select Sector SPDR Fund (XLY), Vanguard Consumer Discretionary ETF (VCR), Fidelity MSCI Consumer Discretionary Index ETF (FDIS) and Grayscale Bitcoin Adopters ETF (BCOR).But before diving into the specifics of these ETFs, let us check how Tesla performed in the third quarter, in terms of other metrics. A Brief Analysis of TSLA’s Q3 ResultsTesla reported third-quarter 2025 earnings per share of 50 cents, which missed the Zacks Consensus Estimate by 5.7% and also declined 30.6% from the year-ago figure. Total revenues of $28.10 billion surpassed the Zacks Consensus Estimate by 6.2% and rose 12% year over year. TSLA’s third-quarter production totaled 447,450 units, which declined 5% year over year. The company delivered 497,099 vehicles, which rose 7% year over year. Tesla's energy storage division achieved its highest-ever quarterly deployments, supported by the ongoing production increase at Megafactory Shanghai and a new record for Powerwall unit shipments. This strong performance drove this business’ gross profit to a record of $1.1 billion, marking an increase from both the prior-quarter and the previous year’s levels.Its net cash provided by operating activities amounted to $6.24 billion, down from $6.26 billion in the year-ago period. Moreover, Tesla generated free cash flow of $4 billion compared with $2.7 billion in the third quarter of 2024.Looking ahead, the company believes it has sufficient liquidity for its product roadmap and long-term expansion plans. While focused on reducing manufacturing costs for vehicle hardware, Tesla expects its future profitability to be increasingly driven by the acceleration of AI, software, and fleet-based services.In terms of product lineup, the company remains enthusiastic about volume production for Cybercab, Tesla Semi, and Megapack 3, scheduled to start next year. Tesla-Heavy ETFs to TapConsumer Discretionary Select Sector SPDR Fund (XLY)This fund offers exposure to companies in specialty retail; broadline retail; hotels, restaurants and leisure; textiles, apparel and luxury goods; household durables; automobiles; automobile components; distributors; leisure products; and diversified consumer services. Tesla holds the second position in this ETF, with 20.94% of its shares. XLY has gained 6.9% year to date. It has an expense ratio of 0.08% and assets under management (AUM) worth $24.69 billion. Vanguard Consumer Discretionary ETF (VCR)This fund offers exposure to U.S. companies within the consumer discretionary sector. Tesla holds the second position in this ETF, with 18.18% of its shares. VCR has gained 5.5% year to date. It has an expense ratio of 0.09% and total net assets worth $7.1 billion. Direxion Daily Magnificent 7 Bull 2X Shares (QQQU)This fund offers exposure to the seven largest NASDAQ-listed companies. Tesla holds the second position in this ETF, with 16.03% of its shares. QQQU has surged 28.3% year to date. It has an expense ratio of 0.98% and a net asset value of $58.52 per share. Grayscale Bitcoin Adopters ETF (BCOR)This fund provides exposure to a global basket of publicly traded companies that have adopted Bitcoin as part of their corporate treasury. Tesla holds the first position in this ETF, with 21.86% of its shares. BCOR has soared 33.9% year to date. It has an expense ratio of 0.59% and AUM worth $4.4 million.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free 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 Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks