Frankly, I could have fun with that as a full grown adult in 2026!
Ad above was a Tyco set. The first commercial slot cars were sold by Lionel in 1912,

In the 50’s and 60’s, slot car racing arcades were popular, where people would go to race or watch others race. They still exist today of course, just not in the same popularity and prominence as then.
Vintage track. Also, a greater than average number of ceiling tetrahedrons.

Group of 1960’s ladies having a blast,

8-way track,



Yeah, that little copper peg was for keeping it on the track (did not do a great job of it). There were two thin strips of metal that would touch the exposed copper current lines embedded on the plastic track - I believe they were ahead of the front wheels and roughly equivalent to their width if I remember correctly.
Looks like your memory is right. I don’t know if this one is the same scale, since there are multiple scales of them, but the ones I saw look all similar-ish, with two metal strips like this.
That looks like it! For some reason, I remember the peg being copper (or copper colored), but it was 40 years ago, so my memory may be fuzzy. That red spot on the engine was a groove cut in the cylinder and was what could pinch you if you touched it with the motor running.
No steering, just pure acceleration and prayers that the peg and the tires would hold the track on the curves.
Or even just different SKUs. They probably had a bazillion variations.