News emerged on Friday that Tesla Inc. CEO Elon Musk had sent an email to his company’s employees announcing that the electric vehicle maker would cut its workforce by 10% and implement a hiring freeze.
The company’s stock was down 8% in afternoon trading after the news on Friday. The company is a holding in 294 ETFs, or approximately one-tenth of the ETFs listed in the U.S. In aggregate, ETFs hold $65.1 million shares of TSLA.
It has an outsized weighting in several funds, with the $16 billion Consumer Discretionary Select Sector SPDR Fund (XLY) allocating more than one-fifth of its portfolio to Tesla stock. The ProShares Ultra Consumer Goods (UGE) has an allocation to the stock of 19.53%, while the Vanguard Consumer Discretionary ETF (VCR) weights the stock at 16.65% of its portfolio. While UGE has less than $10 million in assets under management, VCR has nearly $4.7 billion.
The ETFs holding the most shares of TSLA include some of the largest U.S.-listed ETFs. The $373 billion SPDR S&P 500 ETF Trust (SPY) holds 8.88 million shares of the stock, weighting it at 1.95% of its portfolio, while the $165 billion Invesco QQQ Trust (QQQ) is close behind, with 8.86 million shares, weighting the company at 4.73%. The portfolio of the $300 billion iShares Core S&P 500 ETF (IVV) includes 6.99 million shares of Tesla stock, weighting it at 2.15%.
Tesla seems to be a darling of actively managed ETFs, with 76 funds falling into that category holding shares of the company. Cap-weighted vanilla ETFs are not too far behind, with 58 funds holding the stock. TSLA was recently removed from the S&P 500 ESG Index, but 29 ESG ETFs also hold shares of the company.
TSLA stock is down roughly 41% year –to date. In another email, this time to company executives, founder Musk expressed concerns about the state of the economy, saying he had a “super bad feeling” about it.
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