Tesla Battery Pivot Sparks ETF Rotation: America In, China Out?
Tesla's Battery Agreement: Tesla has signed a $4.3 billion battery agreement with LG Energy Solution, focusing on domestic production of lithium iron phosphate batteries in Michigan, which may impact ETFs related to clean energy and manufacturing by enhancing investor confidence in U.S.-made supply chains.
Impact on ETFs: The shift away from Chinese battery suppliers could lead to rebalancing in ETFs, favoring those with U.S. or diversified international exposure while potentially causing volatility for China-focused clean energy ETFs as investors seek to minimize geopolitical risks.
Trade with 70% Backtested Accuracy
Analyst Views on GRID

No data
About the author


Dividend Declaration: First Trust NASDAQ® Clean Edge® Smart Grid Infrastructure Index Fund ETF (GRID) has declared a quarterly dividend of $0.338 per share.
Payment Details: The dividend is payable on December 31, with shareholders of record on December 12, and the ex-dividend date also on December 12.
GRID's Stock Performance: GRID's share price is currently at $154.35, with a 52-week low of $99.78 and a high of $155.78, indicating a strong performance near its high point.
Understanding ETFs: Exchange traded funds (ETFs) function like stocks, where investors buy and sell "units" that can be created or destroyed based on demand, impacting the underlying assets.
Monitoring ETF Flows: Weekly monitoring of shares outstanding helps identify ETFs with significant inflows (new units created) or outflows (units destroyed), which can affect the individual components within those ETFs.
Author's Perspective: The opinions expressed in the article are those of the author and do not necessarily represent the views of Nasdaq, Inc.
GRID Stock Performance: GRID's share price is currently at $148.69, with a 52-week low of $99.78 and a high of $149.625, indicating a strong performance near its high point.
ETFs Trading Dynamics: Exchange traded funds (ETFs) function like stocks, with units that can be created or destroyed based on investor demand, impacting the underlying holdings significantly.
Tariff Announcement Impact: President Trump announced a 100% tariff on foreign-made semiconductors unless companies build fabs in the U.S., positively affecting stocks like Apple and Taiwan Semiconductor Manufacturing Co. (TSMC), while raising questions about which ETFs will benefit or suffer from these changes.
ETF Winners and Losers: Semiconductor ETFs with U.S.-based manufacturing, such as VanEck and iShares, are likely to gain, while those with exposure to Asian tech supply chains, like iShares MSCI All Country Asia ex Japan ETF, may face risks due to potential tariff impacts.
Tesla's Battery Agreement: Tesla has signed a $4.3 billion battery agreement with LG Energy Solution, focusing on domestic production of lithium iron phosphate batteries in Michigan, which may impact ETFs related to clean energy and manufacturing by enhancing investor confidence in U.S.-made supply chains.
Impact on ETFs: The shift away from Chinese battery suppliers could lead to rebalancing in ETFs, favoring those with U.S. or diversified international exposure while potentially causing volatility for China-focused clean energy ETFs as investors seek to minimize geopolitical risks.
AI's Impact on Power Demand: Major tech companies are investing heavily in AI, leading to a projected 165% increase in global data center electricity demand by 2030, prompting investors to consider power generation and infrastructure-related ETFs.
Investment Opportunities in Infrastructure: As the demand for data centers rises, ETFs focused on utilities, infrastructure, and digital real estate are becoming increasingly relevant, with companies like Meta planning significant expansions that will drive growth across various sectors.










