Tesla (TSLA) shares were down on Wednesday morning after the company reported weak sales in China. Here’s what the news means for mutual fund investors.
Inside the News
Tesla’s CEO Elon Musk reported on Wednesday that sales in China dropped significantly during the fourth quarter. It was also reported that Tesla would not be profitable until 2020.
Pay Close Attention to Upcoming Earnings Release
The sales report for China was definitely a surprise for Wall Street. With the disappointing China sales and concerns regarding low gas prices, many investors and fund managers may be waiting for Tesla’s next earnings release in mid-February before considering a position.
Mutual Funds to Watch
Investors interested in Tesla may be interested in the funds listed below. These funds currently have the largest stakes in the company.
| Symbol | Mutual Fund | Stake |
|---|---|---|
| FCNTX | Fidelity® Contrafund® | 3.68% |
| VTSMX | Vanguard Total Stock Market | 1.20% |
| MPEGX | Morgan Stanley Mid Cap Growth | 0.92% |
The Bottom Line
The funds listed above allow investors to gain exposure to Tesla while remaining diversified. Investors interested in Tesla may also be interested in Toyota Motors™ or Ford (F).
