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.
| Level | Market (SPY) | Sector (XLY) | Subsector (CARZ) | Explained risk |
|---|---|---|---|---|
| L1 | $-1.97 | — | — | 28.7% |
| L2 | $-1.10 | $-0.73 | — | 52.0% |
| L3 | $-0.47 | $-0.75 | $-0.32 | 53.3% |
Data as of June 12, 2026. Updated daily from the ERM3 pipeline.
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