From Tesla to Your 401(k): How to Invest in the Elon Musk Stock Without Wrecking Your Retirement

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Investing Stocks Share Share Close Mail Page URL https://money.com/elon-musk-tesla-stocks-retirement-strategy/ Link copied! From Tesla to Your 401(k): How to Invest in the Elon Musk Stock Without Wrecking Your Retirement By: Marc Guberti Marc Guberti Marc Guberti is a personal finance writer who hosts Breakthrough Success, a podcast where he teaches listeners how to grow their businesses and achieve personal transformations. Has also written: Suze Orman’s Golden Rule of Money: Why Peace of Mind Beats Chasing Bigger Returns What Jim Cramer’s Investing Misses Can Teach You Warren Buffett’s Warning About This Hidden Risk in the Stock Market I'm 34 and No Longer Want to Own a Home. Is It 'Bad' to Just Throw All of Those Savings Into a Brokerage Account?

Turning Spare Cash Into Gold: A Step‑by‑Step Guide for Cautious New Investors See full bio Published: Mar 4, 2026 4 min read Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

Getty Images Tesla’s stock has soared since 2020, leading to FOMO for those who didn’t invest when shares were much cheaper. But aggressively buying Tesla and other stocks backed by entrepreneurs like Elon Musk isn’t a strong strategy for investors saving for long-term goals like retirement. What is a smart strategy is investing via a well-diversified portfolio with a long-term mindset — and you'll still likely have exposure to popular growth stocks. For instance, you may not own Tesla stock directly, but if you own an S&P 500 index fund, Musk’s company is a larger part of your portfolio than you may expect. Here’s how you can map out your exposure to Musk’s companies and any other high-flying stocks. Must ReadExperts are Bullish on Gold — Here's How to Get In3 Ways You Can Make Cash on Your CouchThese Are the Best High-Yield Savings Accounts Right Now 1. Determine your current stock allocation The first step is to review all of the stocks, exchange-traded funds (ETFs) and mutual funds in your account and determine how much of your portfolio is invested in these stocks. You can look at their top holdings and see if Tesla and other large tech stocks are on the list. If you have a fund that follows a benchmark like the S&P 500 or Nasdaq Composite, companies with large market caps take up more real estate. That means you will have more exposure to Tesla than smaller companies. You don’t want to spend hours looking through hundreds of positions in your index fund. But you should pay attention to which stocks make up at least 1% of one of your total assets, keeping in mind that many experts say that if a stock is making up more than 5% of your portfolio, it’s considered a concentrated position. Vet bills can cost thousands — see what pet insurance might cost you 2. Set a limit Younger investors with horizons that span years or even decades have more time to endure market corrections and sharp volatility. But when you are getting close to retirement, you may want to trim your exposure to growth stocks. Capping your exposure to a single stock by a small single-digit percentage — like the aforementioned 5% — offers a balance. You get exposure to a stock that can generate significant returns, but if the price plummets, it won’t be a disaster for your retirement plan. Still paying for subscriptions you don’t use? See what you could cancel 3. Rebalance without emotion The best investors use logic, rules and criteria to guide their investments. They do not rely on emotions, and they establish necessary guardrails to ensure they remain on target for retirement. You can periodically review your 401(k) plan and rebalance some of its holdings to reduce exposure to growth stocks like Tesla as your risk tolerance wanes. The strategies that work for investors in their 20s and 30s don’t necessarily work when you are in your 50s and 60s. Trimming positions when they get above a certain percentage can ensure that you aren’t too concentrated in a single stock. Grow your investing confidence with expert-selected stock picks 4. Align with your retirement timeline While many people like the thought of buying a single stock that takes off, most people can retire just fine by implementing a more boring investing strategy that aligns with their goals and time horizon. Financial advisors tend to recommend retirees save up enough money in a liquid account like a savings account to cover one to two years’ worth of expenses. Then you can allocate your assets to bonds and stocks — including durable dividend stocks but also high-growth stocks — based on factors like your other sources of income, expenses and goals. Must ReadExperts are Bullish on Gold — Here's How to Get In3 Ways You Can Make Cash on Your CouchThese Are the Best High-Yield Savings Accounts Right Now