Electric carmaker Tesla Motors (TSLA) reported disappointing earnings results for Q3 after the closing bell on Tuesday, missing our earnings estimate but impressing investors with strong Model S sales and production target for Model X. This optimism sent the stock price climbing over 10% in aftermarket hours on elevated volume. In pre-market trading today, TSLA is up more than 8% at the time of writing.

Tesla Q3 Earnings in Focus

Adjusted loss per share came in at $1.01 cents in the quarter, wider than the Zacks Consensus Estimate of a loss of 71 cents. Revenues climbed 33% year over year to $1.24 billion and were ahead of the Zacks Consensus Estimate of $1.21 billion.

Despite a one-week shut down to expand manufacturing capacity, the company produced a record 13,091 vehicles and delivered a record 11,603 cars in Q3, including the first Model X vehicles. Notably, demand for Model S has been growing at a faster pace in North America, Europe and Asia that led to a more than 50% year-over-year rise in global orders (read: Tesla Launches Model X: Time to Bet on Its ETFs?).

Tesla expects to produce 15,000–17,000 vehicles and deliver 17,000–19,000 in the fourth quarter, resulting in total deliveries of 50,000–52,000 vehicles for the full year. While full-year deliveries are pegged lower than the previous guidance of 50,000–55,000 units, Tesla Motors CEO Elon Musk seems confident of production and deliveries of 1,600 to 1,800 vehicles per week together for Model S and Model X in 2016.

Additionally, the company is on track to launch its Model 3 sedan in late March with first delivery expected in 2017.

ETFs to Watch

Given the solid production and delivery guidance for fiscal 2016 despite the earnings miss, the smooth trading in Tesla encouraged investors’ to stock up the ETFs having a substantial allocation to this luxury carmaker. Tesla currently has a favorable Zacks Rank #3 (Hold) and a solid Zacks Industry rank in the top 43% at the time of writing.

Below we highlight four ETFs that could be great plays for investors to tap Tesla in the coming days (read: ETF & Stocks Riding on Auto Sector Boom).

Market Vectors Global Alternative Energy ETF (GEX)

This ETF tracks the Ardour Global Index, focusing on global companies that are primarily engaged in the business of alternative energy. The fund holds about 31 stocks in its basket with AUM of $84.9 million while charging 62 bps in fees per year. Average daily volume is paltry at about 5,000 shares. Tesla Motors occupies the top position in the basket with 10.5% allocation. In terms of country exposure, the fund is skewed toward the U.S. with 51.5% share while China and Denmark round off the top three spots with over 10% allocation each.

First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)

This fund tracks the Nasdaq Clean Edge Green Energy Index and manages assets worth $68.1 million. It charges 60 bps in fees per year while trades in a lower volume of around 19,000 shares per day. In total, the product holds 46 U.S. securities with Tesla Motors taking the third spot in the basket at 6.8%. Technology firms dominate this ETF, accounting for one-third of the assets while oil & gas, utilities and industrials round off the next three spots with double-digit allocation each (see: all the Alternative Energy ETFs here).

ARK Industrial Innovation ETF (ARKQ)

This is an actively managed ETF seeking long-term capital appreciation by investing in companies that benefit from the development of new products or services, technological improvements and advancements in scientific research related to robotics, energy storage, innovative materials, alternative energy sources, infrastructure development, space exploration, autonomous vehicles and 3D printing. This approach results in a basket of 41 stocks, with TSLA occupying the fourth spot with 5.0% share. The product has accumulated $13.4 million in its asset base since its debut and charges 95 bps in fees per year. It sees paltry volume of under 1,000 shares a day.

ARK Innovation ETF (ARKK)

Like ARKQ, this is also an actively managed fund and follows the same strategy but provides exposure to genomic companies, industrial innovation companies or Web x.0 companies. In total, the fund holds 49 securities in its basket with Tesla occupying the fourth position holding 4.4% share. The product has accumulated $8.2 million in its asset base since its debut and trades in a paltry volume of about 1,000 shares. Expense ratio came in at 0.95%.

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 >>
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 MOTORS (TSLA): Free Stock Analysis Report
 
MKT VEC-GLBL AE (GEX): ETF Research Reports
 
NASDAQ-CL EDG G (QCLN): ETF Research Reports
 
ARK-INDUS INNOV (ARKQ): ETF Research Reports
 
ARK-INNOVATION (ARKK): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
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