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Leading megatrend tech ETF says Tesla remains undervalued | ITEK

A spokesperson for the HAN-GINS Tech Megatrend ETF (ITEK), says despite the recent meteoric rise in the share price of Tesla, the company is undervalued. 

The Tech megatrend ETF, which recently surpassed $70milllion in assets under management[1], says there are many reasons why Tesla is undervalued.  The electric vehicles sector has recently posted the strongest growth in eight years, and with 1.3 million cars on the road, it says Tesla has reached a crucial inflection point.  It believes the company is increasingly set to disrupt a growing number of industries including energy, software, robotics, ride sharing and insurance. 

Anthony Ginsberg, Co-creator of the HAN-GINS Tech Megatrend ETF (ITEK), says: “Tesla is not just a car company – it’s use of remote Cloud and AI technology is increasingly in-house and not outsourced like all other car manufacturers.  Many of us thought the first robots would look like humans - but they ended up looking like cars.  Tesla is manufacturing the world’s first fully autonomous robots.  Its self-driving cars will likely be safer than humans, reducing insurance costs and could ultimately displace ride-sharing apps by being far cheaper.  Last month they released a fully self-driving car, and it works.  It already sells insurance at 20%-30% cheaper than traditional insurance. 

“We believe Tesla also remains undervalued based on its cutting-edge manufacturing too – it’s considerably cheaper than traditional automakers.  Instead of a traditional car frame of 700+ parts, Tesla now uses just two parts – via its ‘Mega-casting’ technology.  Tesla’s self-driving trucks (Tesla Semi) will likely change the face of trucking/lorries. 

“Tesla is disrupting a number of industries at once – Tesla Solar with its Charging Network, Powerwall & Energy Marketplace could transform the traditional energy sector.   While Tesla does not have car dealerships nor sell vehicles by model year – it upgrades its models in real time unlike any other carmaker.  It is truly a revolutionary company.” 

The HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) delivered growth of 29.45% in the last 3 months and 64.82% in the last 12 months[2] compared to the Nasdaq 100 index which returned 45%[3],in the past 12 months. Past performance is no guarantee of future performance.  When you trade ETFs your capital is at risk.

HAN-GINS Tech Megatrend Equal Weight UCITS ETF (ITEK) is a UCITS compliant megatrend ETF domiciled in Ireland, that tracks the Solactive Innovative Technologies Index (Net Total Return), an index of leading companies that are driving innovation in sectors including Robotics & Automation, Cloud Computing & Big Data, Cyber Security, Future Cars, Genomics, Social Media, Blockchain and Augmented & Virtual Reality.  

The HAN-GINS Tech Megatrend ETF (ITEK) is expecting strong growth in the global technology sector this year. It invests across eight tech megatrend sub-themes, with Genomics, cyber security, social media and future cars having the four largest weightings (see table):

 

Megatrend Sub-theme

Total Return (%)

% Average Weight

2020 Performance of category (%)

Genomics

11.54

16.14

71.50

Cyber Security

8.94

15.30

58.43

Social Media

8.27

14.97

55.24

Future Cars

10.56

14.59

72.38

Cloud Computing

3.76

15.27

24.62

Robotics & Automation

6.28

16.76

37.47

Digital Entertainment

4.42

4.18

105.74

Blockchain

4.36

0.67

650.75

Source: Solactive Fact Set and Bloomberg.  Data as of 31.12.2020.  Past performance is no guarantee of future performance.

 

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