Cathie Wood Is Selling Tesla Stock Yet Again. When Will It Be Time to Dump Shares?

Core Viewpoint - Tesla shares have experienced a decline of over 3% following Cathie Wood's decision to further reduce her stake in the company, indicating a potential bearish sentiment towards TSLA stock [1]. Group 1: Investor Sentiment - Cathie Wood has sold an additional $30 million worth of Tesla shares to invest in gene-editing and autonomous mobility companies [1]. - Tesla's stock is currently up more than 100% compared to its year-to-date low, reflecting significant volatility [2]. Group 2: Competitive Landscape - Steve Westley, a former board member of Tesla, suggests that the company will need to make substantial efforts to maintain its market performance in the upcoming year [3]. - Tesla is significantly lagging behind Waymo in terms of robotaxi performance, with Waymo achieving 17,000 miles between critical interventions compared to Tesla's 1,500 miles [4]. Group 3: Valuation Concerns - Tesla's forward price-to-earnings (P/E) ratio is nearly 430x, making it one of the most overvalued stocks in the S&P 500 Index [5]. - The stock has fallen below its near-term moving average, indicating ongoing pressure [6]. - Analysts predict that 2026 could mark a second consecutive year of declining sales and shrinking profits for Tesla, further complicating its stock outlook [6]. Group 4: Analyst Ratings - Wall Street analysts currently maintain a 'Hold' rating on Tesla, reflecting concerns over its valuation at present levels [7].