TSLA (TSLA)

Daily ERM3 factor decomposition: how much of TSLA's variance is explained by the market, its sector, and its subsector — and the ETF notionals that would neutralize each layer.

Price
$399.15
Market cap
$1.41T
23-day vol
50.0%
Sector proxy
XLY
Subsector proxy
CARZ

Risk DNA

53% of TSLA's variance is systematic (explainable by market, sector, and subsector factors); the rest is stock-specific.

Market 28.7%Sector 23.3%Subsector 1.3%Stock-specific 46.7%

ETF hedge ratios

Dollars of ETF to short per $1 of TSLA held — executable hedge weights, not regression betas. L1 hedges market only; L3 adds sector and subsector layers.

LevelMarket (SPY)Sector (XLY)Subsector (CARZ)Explained risk
L1$-1.9728.7%
L2$-1.10$-0.7352.0%
L3$-0.47$-0.75$-0.3253.3%

Data as of June 12, 2026. Updated daily from the ERM3 pipeline.

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