Tesla Slides in S&P 500 Debut

The video discusses Tesla's entry into the S&P 500, its growth trajectory, and the challenges it faces in the electric vehicle market. It highlights Tesla's potential to disrupt the auto industry, its future competition, and its strategic moves, including its operations in China and relocation to Texas. The discussion also covers investment strategies, risks, and capital allocation for Tesla.

What is one of the challenges faced by market cap-weighted indexes according to the discussion?

• They avoid investing in technology sectors.

• They focus too much on small-cap stocks.

• They often buy past winners instead of early-stage growth companies.

• They tend to invest in emerging companies.

What percentage of cars sold today are electric, as mentioned in the video?

• 2.5%

• 5%

• 15%

• 10%

What is the expected production target for Tesla in the next 7 to 10 years?

• 15 million cars per year

• 20 million cars per year

• 10 million cars per year

• 5 million cars per year

Why is Tesla's expansion into China considered crucial?

• China has no local electric vehicle manufacturers.

• China has the most advanced battery technology.

• China is the largest automobile market in the world.

• China offers the cheapest labor for manufacturing.

What is a potential risk for Tesla if Elon Musk changes his priorities?

• The company might stop producing electric vehicles.

• Tesla could face legal challenges.

• Tesla might lose its manufacturing capabilities.

• The stock might not perform as well.

What is one reason companies might consider relocating to Texas, as discussed in the video?

• Texas has the largest tech workforce.

• Remote work allows more flexibility in location.

• Texas has the most affordable real estate.

• Texas offers the best tax incentives.

How does Tesla plan to use the capital it has raised?

• To build infrastructure for gigafactories worldwide.

• To invest in new technology startups.

• To acquire other electric vehicle companies.

• To increase marketing and advertising efforts.