Elon Musk and Cathie Wood discussed the timing of Tesla’s addition to the S&P 500, highlighting the oddity of index investors missing out on significant gains.
Musk expressed concerns about the growth of index funds, stating that they have become too large and can amplify stock price fluctuations.
Musk indicated that SpaceX may not go public, as public markets focus too much on short-term cash flow, while private markets allow for more risk-taking.
Musk reiterated his belief in the potential of self-driving cars, stating that Tesla’s autonomous-driving technology is advanced and regulatory hurdles can be overcome.
The conversation also touched on the impact of a privately held company, X, on Tesla’s stock. Losses at X could lead to stock sales by Musk, which would be significant to investors.
Cathie Wood’s ARK Invest has not been selling Tesla stock and recently bought 111,000 Tesla shares in two funds.
Tesla stock was down 0.4% in midday trading, while the S&P 500 and Nasdaq Composite were not mentioned.