A difficult 2022 for big tech hasn’t exempted Tesla (TSLA), with CEO Elon Musk’s decision to buy Twitter adding to the challenges the market sees for the pioneering electric car company. But recent news that the firm has delivered (PEP) presents an opportunity for investors in a robotics ETF: the ARK Autonomous Technology & Robotics ETF (ARKQ ).
TSLA had initially signaled its plans for electric semi trucks back in 2016, with an eye on reducing the cost and environmental footprint of transporting cargo. Though the pandemic took a bite out of the production and delivery schedule, the trucks have arrived to one of the biggest companies in the U.S. and can now prove their mettle on American highways.
PEP will eventually have a 100-vehicle fleet of the electric trucks, which can make a 500-mile trip without recharging and could see long-term improvements to charging rates thanks to Wright’s Law. TSLA also disclosed that both the semi and the Cybertruck use 1MW chargers, and if the truck does arrive to market with that charging power, it would reach ARK’s projections for EV performance in 2023, three years ahead of when ARK predicted based on its research.
Investors may also be intrigued by the potential of cutting costs in a logistics sector that saw prices skyrocket amid the heights of the COVID-19 pandemic. For those looking for more exposure to TSLA, consider ARK’s robotics ETF ARKQ.
ARKQ lists TLSA as its largest holding, weighted at 9.7%. The ETF invests actively in companies that are positioned to benefit from advancements in energy and transportation, like the charging and energy efficiency capabilities of the new semi truck at TLSA, as well as in automation, manufacturing, and materials.
Charging 75 basis points, ARKQ has seen its performance increase over one month compared to over the last three months, up by 11%. The robotics ETF has also seen an increase in net flows, up by about $15 million when comparing five-day flows to one-month flows.
Electric vehicles will continue to be a big part of the transition to a greener economy, and with so much interest in green passenger vehicles, green cargo transportation may be coming into its moment. For investors looking for more exposure to that transition via TSLA, ARKQ may be an ETF to watch.