The world is an extremely complex place, and valuing things is extremely hard. There are way to many factors that contribute. The "correct" value will vary based on both factors in the world, as well as individual-specific factors[0].
The next-best alternative is one of them. We are currently in an economic situation where money is literally being printed by the trillions, there has not been a offsetting set of funds going back to the government (thus increasing the money supply), and interest rates are 0 (and stated to stay there for the forseeable future). There is lots of money, that has to go to something, which raises the price of everything (or devalues the dollar, depending on how you look at it).
You ask 'Is there any event that would cause the value to "correct"?'. As a definitely-not-economist, I would guess any event that modifies either of the aspects I mentioned above. Reducing the money supply (perhaps taxing capital gains more reasonably), or increasing interest rates.
[0] I want to point out here that each individual entity buying something will have a different "correct price" for them, based on individual factors, especially at scale. One of these is individual risk, and how the risk associated with a given stock correlates with other risk in your life. If you live in an oil town, investing in a correlated asset should require a better potential payoff, and thus a better entry point, than someone who has no other oil exposure (if the industry collapses, do you really want to lose both your job and your investments?)
PS:
> It doesn't make sense for TLSA
I never said, and would never make the argument, that TSLA is "correctly" valued. But I'm also not insane so am not going to try to short it.