Tesla Inc (NASDAQ:TSLA) is still one of Wall Street’s most-watched names, but now it’s less about innovation and more about crash landings — figuratively speaking.

With the stock off 33% year-to-date, investors are picking through the wreckage, trying to discern what comes next. A number of ETFs with major Tesla exposure have been in the hot seat lately, some expecting a bounce, others preparing for more bruises.

Simplify Volt TSLA Revolution ETF (NYSE:TESL) is arguably the most Tesla-heavy of them all, with a 54% weightage. It actively manages Tesla volatility through options overlays — imagine a high-risk Tesla with a parachute. Whether that parachute deploys in time is anyone’s guess.

Nightview Fund (NYSE:NITE) contains a Tesla weighting of 18.4%, ranking as one of the most exposed to Tesla of all the mainstream funds. For holders of this ETF, headlines on Tesla are more than mere news, these are portfolio-forming events.

Vanguard Consumer Discretionary ETF (NYSE:VCR) isn’t far behind either, with Tesla contributing 13.3% to its portfolio.

As the stock plunges further and Wall Street analysts cut price targets in anticipation of every earnings season, these ETFs are traversing a rather Musk-ified market risk, one part fundamentals, one part drama.

Also Read: Tesla Stock Faces Demand, Political, Tariff Pressure: Why Analysts Focus On ‘Multiple Generational Growth Drivers’

Tariffs, Trouble & Tesla’s Energy Mirage

Below the stock chart and into the details, Tesla’s most recent earnings report was a mixed bag. One welcome silver lining? The company’s energy and storage division, which reported $2.7 billion in revenue, up 67% from last year, with gross profit up a healthy 82%. But the celebration was short-lived.

CFO Vaibhav Taneja also identified a huge threat: the tariff headwinds that endanger the segment. “The impact of tariffs on the energy business will be outsized since we source LFP battery cells from China,” he pointed out on the call.

Tesla’s alternative plan is to commission battery cell production in the country and search for outside-China suppliers. But Taneja conceded, “it will take time,” words not necessarily reassuring for investors eager to feed growth.

At the same time, Tesla’s brand-new megafactory in Shanghai — designed to turbocharge global energy storage manufacturing — has already hit turbulence. New tariffs have thrown a wrench into those overseas expansion plans just months after opening, potentially sidelining the company’s ambitious 50% growth projection for 2025.

And then there’s the “Elon” of all things. Musk’s polarizing political image, particularly his heightened profile in the Trump administration, has ignited vitriol — protests, boycotts, even crimes — against the brand. Sales suffered, analysts were doubtful and the company leadership’s priority seems, well, unfocused.

As Musk publicly attacks tariffs, ironically the same instrument ruining his own company’s drive into energy, one might have assumed his political stance would finally win out over criticism, and settle down to tidy up the perception mess around core customer segments.

What To Watch

ETF Tweaks: Will high-exposure ETFs rebalance or double down on Tesla? Monitor quarterly reshuffles and options activity.

Energy Segment Headwinds: Advancement on U.S.-based battery manufacturing and alternative suppliers will be paramount to keeping the energy segment afloat.

Geopolitical Shockwaves: Additional tariff ramp-ups or political noises surrounding China-U.S. trade could amplify risks for Tesla — and transmit through ETFs.

Elon’s Impact: Never underestimate the market-moving ability of a Musk tweet or political shift.

For investors, it’s a high-voltage waiting game. Whether Tesla recovers or ignites further volatility, one thing’s certain — the ETFs riding its fate will be anything but dull.

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Photo: Courtesy Tesla Inc.