Trim Overweight Tesla Exposure for Diversification

2 months ago

Steve Clapham

"We trimmed our Tesla position last year when it reached about a third of some client portfolios. We first bought Tesla in February 2020 at an average of $41.66 a share and it appreciated seven to eight times, eventually leading to an overweight position of roughly 33% in some accounts. Trimming this position enabled us to free up capital for attractive new opportunities like QXO and helped rebalance our portfolio."

The speaker provides an actionable portfolio management insight for investors holding Tesla (TSLA). When Tesla positions grow too large—around 33% of a portfolio—investors should consider trimming their exposure to mitigate concentration risk. This decision, supported by quantitative details including purchase price and subsequent growth multipliers, serves as a rebalancing measure to unlock capital for future high-conviction trades.

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