Content and data provided by various third parties and Fidelity − Terms of Use | Help/Glossary
Research > ETFs > ETF / ETP Commentary > 

Tesla Earnings Test XLY After Sector-Leading 5-Day Run

BY | ETF Database
10:09 am ET 10/22/26 | 11 VIEWS
  • Related Symbols
  • XLY
Tesla, Inc. (TSLA) beat Wall Street’s profit forecast Wednesday even as its auto revenue slipped, putting a top consumer discretionary ETF holding in focus.Key Takeaways: Adjusted earnings of 48 cents per share topped estimates, though core automotive revenue declined 3% from a year earlier. Free cash flow reached $1.53 billion as Tesla trimmed its full-year capital spending plan to $20 billion. XLY gained more than any other State Street sector ETF in the five trading days before the report. The electric vehicle maker posted adjusted earnings of 48 cents per share, topping the 43-cent LSEG estimate, CNBC reported. Still, shares slid more than 3% in extended trading after the release. By Thursday morning, the stock had pared those losses, trading down 0.8% as of 11:36 a.m. ET, according to Yahoo Finance. Tesla made up 18.14% of the State Street Consumer Discretionary Select Sector SPDR ETF (XLY A) as of Oct. 21, according to State Street. Only Amazon.com, Inc. (AMZN) carried a bigger weight at 23.22%, meaning two stocks accounted for 41.36% of the 47-company fund. XLY held steady Thursday afternoon, down about 0.02%, according to ETF Database. The fund came into the report on a run after gaining 3.6% in the five days ended Oct. 21. That was the best showing among the firm’s 11 sector ETFs. See more: New State Street Sector ETFs Give Biggest Stocks Full Weight Tesla rose 5.3% over that stretch, while Hasbro, Inc. (HAS) led XLY’s holdings with a 19.4% jump, State Street data showed. XLY held $22.16 billion in assets as of Oct. 21 and charges a 0.08% gross expense ratio. Tesla’s revenue came in at $28.05 billion, roughly flat from a year earlier, the company said. Core automotive revenue, however, fell 3% to $20.56 billion. Battery availability remained “the limiting factor in increasing auto volumes in the quarter,” Tesla said. CNBC reported that the company also pointed to lower average selling prices for its cars. Services and other revenue offered a lift, climbing 33% to $4.61 billion, according to Tesla. Active subscriptions to Full Self-Driving (Supervised), the company’s driver-assistance software, rose 67% to 1.74 million. Meanwhile, net income fell 43% to $787 million as operating expenses rose 39%, Tesla reported.Tesla Cash Flow Beats ExpectationsFree cash flow, or cash left after capital spending, came in at $1.53 billion, Yahoo Finance reported. Analysts had expected Tesla to burn through $4.92 billion. The company also cut its full-year capital spending forecast to $20 billion from $25 billion. Morningstar analyst Seth Goldstein said investors were reacting to “capacity constraints in the company’s auto and battery growth, which could slow near-term growth,” according to Yahoo Finance. Tesla’s Robotaxi fleet in Austin includes 362 Model Y vehicles and 449 Cybercabs authorized for driverless operations, CNBC reported. CEO Elon Musk said on the call that the fleet will start contributing to Tesla’s financials in 2027. “It’s not like going to move the needle this quarter,” Musk said. “I think it starts to become noticeable in Q2 and then probably a big deal by Q3 or Q4 of next year.” For more news, information, and analysis, visit our Sector Investing Content Hub.

More Commentary

MANGOS ETFs: The Fruits of AI Innovation
BY | ETF Database
5:19 am ET 10/22/26 | 26 VIEWS
Better Forecasting Starts With Admitting Youre Wrong
BY | ETF Database
10:01 am ET 10/22/26 | 13 VIEWS
How Tempus AI Built a Defensible Data Moat in Precision Healthcare
BY | ETF Database
7:40 am ET 10/22/26 | 16 VIEWS
View more Commentary

Search Commentary

Enter Keyword(s)
Filter Results

Performance data shown is past performance and is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. Yield and return will vary, therefore you have a gain or loss when you sell your shares. For standard quarterly performance, go to the fund's Snapshot page by clicking on the ETF/ETP's symbol.

ETFs may trade at a premium or discount to their NAV and are subject to the market fluctuations of their underlying investments.

For iShares ETFs, Fidelity receives compensation from the ETF sponsor and/or its affiliates in connection with an exclusive long-term marketing program that includes promotion of iShares ETFs and inclusion of iShares funds in certain FBS platforms and investment programs. Please note, this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral. Additional information about the sources, amounts, and terms of compensation can be found in the ETF's prospectus and related documents. Fidelity may add or waive commissions on ETFs without prior notice. BlackRock and iShares are registered trademarks of BlackRock, Inc. and its affiliates.

FBS receives compensation from the fund's advisor or its affiliates in connection with a marketing program that includes the promotion of this security and other ETFs to customers ("Marketing Program"). The Marketing Program creates incentives for FBS to encourage the purchase of certain ETFs. Additional information about the sources, amounts, and terms of compensation is in the ETF's prospectus and related documents. Please note that this security will not be marginable for 30 days from the settlement date, at which time it will automatically become eligible for margin collateral.

News, commentary (including "Related Symbols") and events are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.

Any data, charts and other information provided on this page are intended to help self-directed investors evaluate exchange traded products (ETPs), including, but limited to exchange traded funds (ETFs) and exchange traded notes (ETNs). Criteria and inputs entered, including the choice to make ETP comparisons, are at the sole discretion of the user and are solely for the convenience of the user. Analyst opinions, ratings and reports are provided by third-parties unaffiliated with Fidelity. All information supplied or obtained from this page is for informational purposes only and should not be considered investment advice or guidance, an offer of or a solicitation of an offer to buy or sell a particular security, or a recommendation or endorsement by Fidelity of any security or investment strategy. Fidelity does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating ETPs. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use. Determine which securities are right for you based on your investment objectives, risk tolerance, financial situation and other individual factors and re-evaluate them on a periodic basis.

Before investing in any exchange traded product, you should consider its investment objective, risks, charges and expenses. Contact Fidelity for a prospectus, offering circular or, if available, a summary prospectus containing this information. Read it carefully.