Everyone has been talking about Tesla being added to the S&P 500. While this is big news, at this point it's already old news. The new big question is will Tesla be added to the Dow? Aka the Dow Jones Industrial Average (DJIA).
Since the DJIA is a price-weighted index, it's highly flawed and the first way Tesla could be added is via Tesla splitting its stock.
Another important factor is historical profitability, and since Tesla is just now turning a profit, the company likely won't be added anytime soon. However, that doesn't mean it won't be added one day. It's already doing the things it needs to to one day be added. In the end, only time will tell!
0:00 Intro
2:18 Understanding market cap-weighted indexes like the S&P 500
3:13 How is a company added to the S&P 500 index?
3:34 The dow is a price-weighted index
5:11 First thing Tesla needs to do to get onto the Dow
5:35 Why aren't Brekshire Hathaway and Amazon on the Dow?
6:15 How are companies added to the Dow Jones Industrial Average?
7:00 What Tesla needs to do to be added to the Dow.
7:59 When might Tesla be added to the Dow?
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