Tesla Plunges After Major Shareholder Cuts Stake

The video discusses Tesla's recent stock volatility, highlighting a significant drop due to Baillie Gifford's reduction in its stake. This move was technical, adhering to portfolio guidelines. Despite this, Baillie Gifford remains a significant shareholder. The video also speculates on Tesla's potential inclusion in the S&P 500, noting that it meets the profitability criteria. An announcement is expected soon, which could lead to significant market activity as index funds adjust their holdings.

What was the primary reason for Baillie Gifford reducing its stake in Tesla?

• Technical reasons due to portfolio guidelines

• Lack of confidence in Tesla's future

• To avoid potential losses

• To invest in other automotive companies

What is a key requirement for a company to be included in the S&P 500?

• Being profitable in the most recent quarter and the prior year

• Being based in the United States

• Having a market cap larger than any automaker

• Having a significant number of retail investors

Why are investors particularly interested in Tesla's potential inclusion in the S&P 500?

• It would make Tesla the largest company in the index

• It could result in a significant increase in Tesla's stock price

• It would lead to a decrease in Tesla's stock price

• It would require Tesla to change its business model

What challenge do index and mutual funds face with Tesla's inclusion in the S&P 500?

• They need to reduce their overall market exposure

• They have to increase their investment in oil stocks

• They must adjust their portfolios to include Tesla

• They need to sell off other stocks to make room for Tesla

What action have some retail investors taken in anticipation of Tesla's inclusion in the S&P 500?

• Shorting Tesla stock

• Investing in other automotive companies

• Buying Tesla shares ahead of the announcement

• Selling their Tesla shares