Tesla (TSLA) saw a 7% year-over-year surge in third-quarter 2025 deliveries, surpassing market expectations. However, this spike was largely due to the U.S. federal EV subsidy expiration, leading to a rush of buyers. CEO Elon Musk had warned of potential turbulence post-subsidy. ETFs like TESL, TSLT, and TSLW may face challenges as the market adjusts.

Legacy automakers like GM and Ford may offer better value and stability amid challenges faced by Tesla, including fierce competition and managing expectations for high-risk ventures. GM and Ford’s diversification and mature international presence may help them weather market fluctuations better than Tesla, making them attractive investments for those seeking stability.

Investors may consider ETFs like RPV, MADE, and COWZ for exposure to legacy automakers and reduced single-stock risk. These ETFs offer exposure to companies like GM and Ford, which have shown resilience and strong performances in the past six months. RPV, MADE, and COWZ provide opportunities for investors seeking stability and growth in the auto sector.

RPV, an ETF focusing on companies exhibiting strong “value” characteristics, has seen a 18.6% surge in the past six months. MADE, providing exposure to U.S. manufacturing companies, witnessed a 41% increase in the same period. COWZ, offering exposure to companies with high free cash flow yields, soared 17.4% in the past six months. These ETFs could be valuable additions to investors looking for growth and stability in the auto sector.

Read more at Nasdaq: Beyond Tesla: Why GM and Ford Heavy ETFs Could Be Safer Bets Now?