Tesla’s robot has the potential to be revolutionary; Get exposure with these 3 ETFs
News broke late last week that Tesla’s second AI day had been pushed back to September 30 because the company could have a working Optimus prototype by then.
Colin Rush, analyst at Oppenheimer told the Nasdaq he sees Optimus driving economies of scale at Tesla, adding that it could help automate production, dramatically reducing car production costs while increasing production at its fledgling factories in Texas and Germany, the Nasdaq reported.
“There’s a huge opportunity around automation,” Rush told Nasdaq. “We’re in a very tight labor market right now across the economy… And so everywhere we see savings in labor rates or, you know, just efficiency in operations. , there’s a lot of value release.”
The timing of Optimus is very favorable for investors given that the $1.1 billion humanoid market is expected to grow 35% annually between 2022 and 2031 as Robocop-like machines get involved in entertainment, education and even space exploration, according to a report by Bizwit Research. & Advice.
There are a few offerings in ARK’s lineup that provide significant exposure to the innovation underway at Tesla starting June 6, including the ARK Innovation ETF (ARKK8.45% by weight), the ARK Autonomous Technology and Robotics ETF (ARKQ8.05% by weight), and the ARK Next Generation Internet ETF (ARKW7.02% by weight), according to VettaFi.
Companies within ARKK include those that depend on or benefit from the development of new products or services, technological improvements and advances in scientific research related to the fields of DNA technologies and the genomic revolution; automation, robotics and energy storage; artificial intelligence and the “next generation internet”; and fintech innovation, according to the fund’s website.
ARKQ invests in companies focused on the development of new products or services, technological improvements and advances in scientific research related to, among others, energy, automation and manufacturing, materials, artificial intelligence and transport, and which stand to benefit substantially. These companies can develop, produce or activate autonomous transport, robotics and automation, 3D printing, energy storage and space exploration.
Businesses within ARKW are focused on moving the foundations of technology infrastructure to the cloud and stand to benefit from this, enabling mobile, new and local services, such as businesses that depend on or benefit from the increased use of shared technologies, infrastructures and services, Internet cloud-based products and services, new payment methods, big data, the Internet of Things, social distribution and media. These companies can develop, produce or activate cloud computing and cybersecurity, e-commerce, big data and artificial intelligence, mobile technology and the Internet of Things, social platforms, blockchain and P2P.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.