This single-stock ETF with Nvidia exposure is up over 400% this year. Why investors should stay away.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 11 2024
0mins
Source: MarketWatch
- Single-stock ETFs Trend: Single-stock ETFs are gaining popularity in 2024, with Nvidia's stock experiencing a significant rally.
- Contact Information: MarketWatch reporter Isabel Wang provides contact information for tips or feedback and mentions her social media handles.
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Analyst Views on TSLA
Wall Street analysts forecast TSLA stock price to rise
30 Analyst Rating
12 Buy
11 Hold
7 Sell
Hold
Current: 400.490
Low
25.28
Averages
401.93
High
600.00
Current: 400.490
Low
25.28
Averages
401.93
High
600.00
About TSLA
Tesla, Inc. designs, develops, manufactures, sells and leases high-performance fully electric vehicles and energy generation and storage systems, and offers services related to its products. Its segments include automotive, and energy generation and storage. The automotive segment includes the design, development, manufacturing, sales and leasing of high-performance fully electric vehicles, and sales of automotive regulatory credits. It also includes sales of used vehicles, non-warranty maintenance services and collisions, part sales, paid supercharging, insurance services revenue and retail merchandise sales. The energy generation and storage segment include the design, manufacture, installation, sales and leasing of solar energy generation and energy storage products and related services and sales of solar energy systems incentives. Its consumer vehicles include the Model 3, Y, S, X and Cybertruck. Its lithium-ion battery energy storage products include Powerwall and Megapack.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Tesla's New Product Platforms Generate Investor Excitement
- Declining EV Sales: Tesla delivered 1.79 million electric vehicles in 2024, reflecting a 1% decline year-over-year, with deliveries dropping further to 1.63 million in 2025, a 9% decrease, significantly impacting financial results as EV sales account for over 70% of total revenue.
- Quarterly Growth Expectations: Despite sales challenges, Tesla is projected to deliver 400,000 EVs in Q2 2026, marking the second consecutive quarter of growth; achieving this target could alleviate market concerns regarding its long-term growth trajectory.
- Increased Competitive Pressure: With Geely Automotive's New Energy Vehicle sales soaring by 90% to nearly 1.7 million units in 2025, Tesla faces intensified competition, particularly in Europe, where Geely's expansion plans may further erode Tesla's market share.
- Future Product Potential: Although Tesla's P/E ratio stands at a staggering 366, significantly higher than the Nasdaq-100's 34.4, many investors remain optimistic about new products like the Cybercab and Optimus, which are expected to generate substantial revenue potential, especially with Optimus slated for mass production by the end of 2026.
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- Overvaluation Risk: SpaceX's current stock price trades at a staggering 125 times earnings, significantly above the S&P 500's average of 3.7, indicating that investor expectations for future growth may be overly optimistic, potentially leading to a price correction.
- Lockup Period Impact: With insiders restricted from selling shares, significant stock price volatility is expected in the coming months, particularly after the second-quarter earnings release, when a flood of new shares could enter the market, exacerbating price fluctuations.
- Continued Massive Losses: SpaceX reported losses of $4.9 billion in 2025 and $4.3 billion in Q1 2026, with management anticipating increased capital expenditures and operating expenses, suggesting that the company may remain unprofitable for an extended period unless revenue growth improves significantly.
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- Investigation Launched: The NHTSA has initiated a special investigation following a fatal crash involving a Tesla Model 3 in Texas, which resulted in the death of 76-year-old Martha Avila, highlighting potential safety concerns with Tesla's automated driving systems.
- Crash Details Revealed: Tesla VP Ashok Elluswamy stated that the driver manually pressed the accelerator to 100%, causing the vehicle to reach a speed of 73 mph in a residential area, raising further questions about the safety of the self-driving technology.
- Historical Investigation Context: Since 2016, the NHTSA has opened over three dozen special investigations into crashes involving Tesla's driver-assistance systems, indicating ongoing scrutiny and regulatory pressure on the company regarding safety issues.
- Market Reaction: Tesla (TSLA) shares traded slightly lower after market close on Monday, as investor concerns over the company's safety issues may impact confidence and subsequently affect stock performance.
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- Buffett's Investment Achievements: Warren Buffett's tenure as CEO of Berkshire Hathaway from 1965 to 2025 saw the company grow into a $1 trillion conglomerate, delivering a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to $48.4 million by 2025, showcasing his exceptional investment acumen and market insight.
- ETF Investment Recommendation: Buffett advises investors to buy ETFs that track the S&P 500, such as the Vanguard S&P 500 ETF (VOO), which boasts an extremely low expense ratio of just 0.03% and broad market coverage, helping average investors achieve long-term stable returns, particularly with a 12.9% annual return since his 2014 recommendation.
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- ETF Investment Recommendation: Buffett's recommendation of the Vanguard S&P 500 ETF (VOO) in 2014, praised for its extremely low expense ratio of just 0.03%, would have turned a $10,000 investment into approximately $42,887 today, showcasing its long-term investment potential and value.
- Diversity of S&P 500: The S&P 500 index includes 500 companies with a minimum market cap of $22.7 billion, ensuring high-quality constituents, with the information technology sector holding a 38.6% weighting, and major firms like Nvidia, Apple, and Microsoft collectively valued at $15.4 trillion, enhancing portfolio stability.
- Future Investment Opportunities: With the rise of technologies like artificial intelligence, autonomous vehicles, and quantum computing, the S&P 500 is expected to benefit from these high-growth areas, making investment in the Vanguard S&P 500 ETF a strategic move to capture future market opportunities, with Buffett's advice remaining highly relevant 12 years later.
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- Deepening Technological Collaboration: Under the multiyear agreement, NatPower will utilize Tesla's Megapack battery storage system and trading technology, optimizing the timing of electricity purchases and sales to enhance operational efficiency.
- Initial Project Launch: The first five projects will commence with a construction cost estimated between $4 billion and $5 billion, ultimately aiming to exceed 100 gigawatt-hours of storage capacity, demonstrating strong confidence in future renewable energy demand.
- Long-Term Revenue Potential: The project is expected to generate over $15 billion in revenue over 20 years, reflecting the strategic alignment between NatPower and Tesla in addressing the challenges of infrastructure delivery in Europe’s energy sector.
See More
Tesla's New Product Platforms Generate Investor Excitement
- Declining EV Sales: Tesla delivered 1.79 million electric vehicles in 2024, reflecting a 1% decline year-over-year, with deliveries dropping further to 1.63 million in 2025, a 9% decrease, significantly impacting financial results as EV sales account for over 70% of total revenue.
- Quarterly Growth Expectations: Despite sales challenges, Tesla is projected to deliver 400,000 EVs in Q2 2026, marking the second consecutive quarter of growth; achieving this target could alleviate market concerns regarding its long-term growth trajectory.
- Increased Competitive Pressure: With Geely Automotive's New Energy Vehicle sales soaring by 90% to nearly 1.7 million units in 2025, Tesla faces intensified competition, particularly in Europe, where Geely's expansion plans may further erode Tesla's market share.
- Future Product Potential: Although Tesla's P/E ratio stands at a staggering 366, significantly higher than the Nasdaq-100's 34.4, many investors remain optimistic about new products like the Cybercab and Optimus, which are expected to generate substantial revenue potential, especially with Optimus slated for mass production by the end of 2026.
See More
SpaceX Faces Stock Volatility Risks Post-IPO
- Overvaluation Risk: SpaceX's current stock price trades at a staggering 125 times earnings, significantly above the S&P 500's average of 3.7, indicating that investor expectations for future growth may be overly optimistic, potentially leading to a price correction.
- Lockup Period Impact: With insiders restricted from selling shares, significant stock price volatility is expected in the coming months, particularly after the second-quarter earnings release, when a flood of new shares could enter the market, exacerbating price fluctuations.
- Continued Massive Losses: SpaceX reported losses of $4.9 billion in 2025 and $4.3 billion in Q1 2026, with management anticipating increased capital expenditures and operating expenses, suggesting that the company may remain unprofitable for an extended period unless revenue growth improves significantly.
- Intensifying Market Competition: While SpaceX leads in the aerospace sector, increasing competition and the majority of its market opportunities being in the AI sector may weaken its economic moat in space, raising investment risks.
See More
Tesla Faces New Federal Safety Probe After Fatal Crash
- Investigation Launched: The NHTSA has initiated a special investigation following a fatal crash involving a Tesla Model 3 in Texas, which resulted in the death of 76-year-old Martha Avila, highlighting potential safety concerns with Tesla's automated driving systems.
- Crash Details Revealed: Tesla VP Ashok Elluswamy stated that the driver manually pressed the accelerator to 100%, causing the vehicle to reach a speed of 73 mph in a residential area, raising further questions about the safety of the self-driving technology.
- Historical Investigation Context: Since 2016, the NHTSA has opened over three dozen special investigations into crashes involving Tesla's driver-assistance systems, indicating ongoing scrutiny and regulatory pressure on the company regarding safety issues.
- Market Reaction: Tesla (TSLA) shares traded slightly lower after market close on Monday, as investor concerns over the company's safety issues may impact confidence and subsequently affect stock performance.
See More
Long-Term Returns from Buffett's Investment Advice
- Buffett's Investment Achievements: Warren Buffett's tenure as CEO of Berkshire Hathaway from 1965 to 2025 saw the company grow into a $1 trillion conglomerate, delivering a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to $48.4 million by 2025, showcasing his exceptional investment acumen and market insight.
- ETF Investment Recommendation: Buffett advises investors to buy ETFs that track the S&P 500, such as the Vanguard S&P 500 ETF (VOO), which boasts an extremely low expense ratio of just 0.03% and broad market coverage, helping average investors achieve long-term stable returns, particularly with a 12.9% annual return since his 2014 recommendation.
- Diversification Advantage of S&P 500: The S&P 500 index comprises 500 profitable companies across 11 economic sectors, ensuring a diversified and stable investment portfolio, with the information technology sector alone accounting for 38.6%, including giants like Nvidia and Apple with a combined market cap of $15.4 trillion, enhancing investment security and growth potential.
- Future Investment Opportunities: With the rise of emerging technologies like artificial intelligence, autonomous vehicles, and quantum computing, investing in the Vanguard S&P 500 ETF remains a wise choice, providing investors with high-growth opportunities while achieving solid risk diversification through hundreds of stocks, ensuring competitiveness in future markets.
See More
Buffett's Investment Wisdom and ETF Recommendation
- Buffett's Success Journey: Warren Buffett transformed Berkshire Hathaway into a $1 trillion conglomerate from 1965 to 2025, achieving a compound annual return of 19.7%, meaning a $1,000 investment in 1965 would have grown to an astonishing $48.4 million by the time he stepped down.
- ETF Investment Recommendation: Buffett's recommendation of the Vanguard S&P 500 ETF (VOO) in 2014, praised for its extremely low expense ratio of just 0.03%, would have turned a $10,000 investment into approximately $42,887 today, showcasing its long-term investment potential and value.
- Diversity of S&P 500: The S&P 500 index includes 500 companies with a minimum market cap of $22.7 billion, ensuring high-quality constituents, with the information technology sector holding a 38.6% weighting, and major firms like Nvidia, Apple, and Microsoft collectively valued at $15.4 trillion, enhancing portfolio stability.
- Future Investment Opportunities: With the rise of technologies like artificial intelligence, autonomous vehicles, and quantum computing, the S&P 500 is expected to benefit from these high-growth areas, making investment in the Vanguard S&P 500 ETF a strategic move to capture future market opportunities, with Buffett's advice remaining highly relevant 12 years later.
See More
NatPower and Tesla Strike $5 Billion Battery Storage Deal
- Large-Scale Project: NatPower and Tesla have reached an agreement to build 25 gigawatt-hours of battery storage in Italy and Britain, with a total project value of up to $5 billion, marking a significant investment in renewable energy across Europe.
- Deepening Technological Collaboration: Under the multiyear agreement, NatPower will utilize Tesla's Megapack battery storage system and trading technology, optimizing the timing of electricity purchases and sales to enhance operational efficiency.
- Initial Project Launch: The first five projects will commence with a construction cost estimated between $4 billion and $5 billion, ultimately aiming to exceed 100 gigawatt-hours of storage capacity, demonstrating strong confidence in future renewable energy demand.
- Long-Term Revenue Potential: The project is expected to generate over $15 billion in revenue over 20 years, reflecting the strategic alignment between NatPower and Tesla in addressing the challenges of infrastructure delivery in Europe’s energy sector.
See More
