Elon Musk Promotes Concentrated Portfolio With Just Tesla Stock To Former Employee Who Said 'Every Time I Diversify I Lose Money'

Billionaire entrepreneur Elon Musk on Thursday promoted the idea of a non-diversified, concentrated stock portfolio with just his EV company Tesla Inc.’s TSLA shares.

What Happened: “Every time I diversify I lose money,” Tesla’s former Director of AI Andrej Karpathy wrote on social media platform X on Thursday.

“TSLA,” Musk responded to Karpathy on Thursday, promoting a portfolio of just Tesla shares, similar to his own.

TSLA 🙌

— Elon Musk (@elonmusk) July 11, 2024

Karpathy left Tesla in July 2022. Given that Tesla has previously given employees stock awards, Karpathy is likely a Tesla shareholder. Musk and Karpathy respond to each other’s posts on X even now, signifying a continued off-work relationship between the CEO and the former employee.

For context, Karpathy, a founding member of leading AI startup OpenAI, left the company to join Tesla in 2017. He then left Tesla in 2022 to rejoin OpenAI, which he subsequently left in February this year.

Musk’s Portfolio: "The only publicly-traded stock I own is Tesla," Musk said on X last week, contrasting himself with Microsoft Corp. co-founder Bill Gates who has a diverse portfolio. Musk currently has about a 13% stake in Tesla with around 411 million shares, according to data from Benzinga Pro.

Despite the concentrated portfolio, Musk is the richest person in the world as per the Bloomberg Billionaires Index which pegs the entrepreneur’s total net worth at $274 billion.

Musk is also the CEO of rocket manufacturing company SpaceX and the executive chairman of X.com.

Price Action: Tesla shares closed up 0.4% at $263.26 on Wednesday, as per Benzinga Pro. The stock is up 6% year-to-date after the stock rally that followed the company reporting second-quarter vehicle deliveries beating estimates.

Since July 13, 2022, when Karpathy announced his departure from the company, until now, the stock has risen over 10%.

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