Cathie Wood Just Bought Nearly 80,000 Shares of Tesla Stock. Should You Load Up on TSLA Too?

Cathie Wood's ETFs acquired more than 79,000 shares of Tesla (TSLA) stock over the last week.

But the automaker has had huge problems with its robotaxis, while it is meaningfully behind Alphabet's (GOOG) (GOOGL) Waymo in the robotaxi race. And, it is facing several other tough competitors in the sector. Moreover, Tesla's reputation has taken a sizable hit due to CEO Elon Musk's political activities, likely negatively impacting its deliveries, and TSLA stock is extremely expensive.

Given all of these points, I do not believe that investors should load up on TSLA stock.

About TSLA Stock

The largest seller of electric vehicles in the U.S. by a wide margin, Tesla delivered 1.64 million EVs globally in 2025, down from 1.79 million in 2024. Last quarter, it handed over 358,023 EVs, up 6% versus the same period a year earlier. 

Tesla has an extremely high market capitalization of $1.32 trillion, while its trailing price-earnings ratio is a gargantuan 317.23 times.

Tesla's Struggles With Robotaxis

As I reported in a previous column, “According to an estimate by the news website Elektrek, (Tesla's robotaxis in Austin, TX) experienced one crash every 57,000 miles between June 2025 and mid-January 2026, versus one crash every 500,000 miles for the ‘average U.S. driver.’” Further, that poor record has been compiled despite most of TSLA's robotaxis driving with human supervisors. Indeed, on March 31, Elektrek reported that ”the vast majority" of Tesla's total robotaxi fleet still carry human supervisors.

And Tesla's website appears to indicate that the company is only offering autonomous rides in Austin and does not mention any other city.

Finally, according to one report, published last October, Waymo's robotaxis had crashed once every 98,600 miles, without any humans in the vehicles. So Waymo's safety record is far better than that of TSLA.

Tough Competition in the Robotaxi Space

Waymo has until recently been deployed in ten American cities (with an 11th in Nashville, TN added recently), while the Alphabet subsidiary is also partnering with Uber (UBER) in Atlanta and Austin. Waymo's alliance with Uber will enable it to exploit the ridesharing firm's app, which is very popular, in order to market its service to riders. Tesla, on the other hand, does not have a deal with Uber.

Another tough competitor for Tesla in the robotaxi space is Amazon's (AMZN) Zoox. Although the service as of the end of last month was only available in parts of Las Vegas and San Francisco, Amazon's huge spending, marketing, and technical abilities should make it a formidable rival for Tesla.

And in China, Baidu's (BIDU) Apollo Go robotaxi platform has become quite popular, while the service recently entered Dubai and South Korea. It will probably be a significant competitor for Tesla in overseas robotaxi markets.

Musk's Political Activism Has Damaged Tesla's Brand

A study published by Yale University in October found that Musk's polarizing ideas had “reduced Tesla's sales by up to 1.2 million vehicles over a three-year period.” Musk's political stance is probably a key reason why the automaker's deliveries, compared with 2023, dropped slightly in 2024 and sank about 8% in 2025. It may take years for this negative trend to dissipate, or it may never fade.

The Bottom Line on TSLA Stock

Tesla's robotaxi business, cited by many as its key positive catalyst, is very problematic, and the growth of its auto business seems to be stymied, at least partly due to Musk's partisan activism. Meanwhile, the stock is still trading at nosebleed levels. So overall, TSLA is not a “Buy,” but a “Sell.”