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Another Tesla Milestone Lifts This ETF

This article was originally published on ETFTrends.com.

In late trading Tuesday, shares of Tesla (TSLA) were higher by more than 4%, elevating the electric vehicle maker's market value to $83 billion.

On an intraday basis, Tesla became the most valuable U.S. automobile maker on record and should that trend continue, the ARK Innovation ETF (ARKK) is one ETF that will benefit. As of Jan. 6, the $1.58 billion ARKK allocated almost 11% of its weight to Tesla, giving the fund one of the largest positions in that stock among all ETFs.

New York-based ARK Investment Management, ARKK's issuer, has long been one of the most overt Tesla supporters, a position that is rewarding investors in ARKK and some of the firm's other ETFs, including the ARK Web x.0 ETF (ARKW) and the ARK Autonomous Technology & Robotics ETF (ARKQ).

ARKW devotes just over 10% of its weight to Tesla while ARKQ's allocation to Elon Musk's company is north of 11%.

A Compelling Tesla History

On a historical basis, Tesla's Tuesday ascent is undoubtedly compelling.

“Tesla’s current market capitalization is approaching $83 billion and that exceeds the peak Ford Motor (F) market value of about $81 billion set in 1999, according to Dow Jones Market Data,” reports Al Root for Barron's. “Tesla’s market value is also larger than prebankruptcy General Motors (GM) , current General Motors, and pre- Daimler (DAI.Germany) Chrysler or Fiat Chrysler Automobiles (FCAU) . (Chrysler and Daimler merged in 1998.)”

All its an adequate proxy on Tesla, ARKK touches many other corners of the emerging technological universe.

Disruptive technology is not relegated to certain sectors as it will permeate into all industries in some form or fashion. For example, augmented reality is technology comprised of digital images superimposed over the real world, and its use is primed to drive industry growth–industries like real estate and manufacturing are already putting the technology to use in a variety of ways.

Related: Tesla Bullishness Puts Spotlight on “DRIV” ETF 

Investors are embracing the ARKK as highlighted by 2019 inflows of nearly $358 million. As for Tesla, it looks like the stock, at least over the near-term, is poised to continue driving ARKK higher.

“Regardless of the caveats, Elon Musk’s feat is impressive. He built a car company from scratch this century, and it is now worth more than any of the so-called Detroit-three automakers at any point in history,” according to Barron's.

For more on disruptive technologies, visit our Disruptive Technology Channel.

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