The YieldMax Tesla Option Income Strategy ETF closed 2025 with a 50.21% distribution rate, offering weekly cash payouts despite Tesla’s lack of a traditional dividend. This income is generated through a covered-call overlay on a single-stock position, a strategy that effectively caps upside. When Tesla reported a fourth-quarter delivery decline, the ETF lost 10.69% on the week, compared with Tesla’s 9.75% slide. Over Friday alone, the fund fell 3.14%. These figures illustrate the volatility risk inherent in single-stock covered-call vehicles, underscoring that exceptionally high yield can come with significant drawdowns in down markets.

Investors seeking high yield on growth exposure without the concentrated risk of a Tesla-only ETF can consider the NEOS Nasdaq-100 High Income ETF. This fund, with a 14.01% distribution rate, spans the full Nasdaq-100 Index and employs covered calls alongside selective option purchases to capture more upside. Since its January 2024 debut through November 2025, it returned 41.53%, versus the index’s 46.04% gain. Its largest 12-month drawdown was roughly 300 basis points less severe than the Nasdaq-100’s and markedly better than the Tesla fund’s peak decline, demonstrating a smoother risk/return profile.

Tesla’s full-year EV deliveries slid by 8.5% in 2025, largely due to the Model Y refresh. Production shifts to the Juniper platform crimped first-half output, yet the second half saw an annualized run rate of 1.83 million units—above the 1.67 million implied by Q4 alone. Wall Street consensus for 2026 deliveries stands at 1.75 million, a midpoint that suggests a recovery next year as the new Model Y rollout completes globally and comparisons benefit from easier comps.

Beyond reaccelerating EV deliveries, Tesla investors will monitor the potential commercial launch of Cybercab robotaxis, slated for April 2026, and anticipated regulatory approval of Full Self-Driving in Europe. Approval in the Netherlands could validate Tesla’s software value-add, potentially boosting average selling prices. Simultaneously, a lower interest rate environment should support auto financing. Combined, these factors may expand margins through higher ASPs and cost reductions from scale, reinforcing the investment thesis for Tesla in 2026.