I have seen two arguments:

1. Tesla has heavily invested in robotics. They will be able to build cars much cheaper than their competitors.

2. Tesla has long-term lithium delivery contracts. They will be able to pay far less for their batteries while the prices for their competitors will massively increase

I have not verified those claims but that would make Tesla's valuation more reasonable.

There is also the self-driving car race. Whoever wins that will take almost all profits. With Twitter, Musk doesn't look too good in the software department right now. However, if you ignore Google, then Tesla still has a chance to win.