A stock that never rose on fundamentals (Tesla stock at its peak valuation was more than GM and Ford combined, their fundamentals were never that good) will also fall regardless of fundamentals.

If the argument is about Tesla stock was worth that because of future expectations, then this fall can just be equally described as based on future expectations. Tesla still has a 33.7 P/E ratio, it could still fall another 50% again before the valuation is "worth it" depending on what metric you personally decide to base your investments.

Is it really though? If you consider how few EVs there are on the roads relatively speaking, and of that small fraction only another fraction are Teslas...

Assuming we're on the cusp of a global electrification of transportation, we should be looking at exponential growth. 54%->37% is the opposite of that.

It is, but Tesla's valuation was based on predictions of much bigger growth.

The craziness is that this company is indeed still performing really well in terms of revenue and growth. And yet investors are selling their shares. Presumably at a loss. And probably it's a really good investment opportunity at this point. I actually bought some mor shares a few weeks ago. Short term that's obviously not working out for me but I have good hopes longer term.

It's still a good market to be producing batteries and electrical vehicles in. Tesla is still a market leader in that market. They've got production capacity, supply chains, etc. working just fine with more capacity coming online. It's still growth market. Nothing has changed really other than people's perceptions. And those can change again.

It does raise the question: why are people selling shares at a loss? Who are these people? Why are they panicking so much that they'll take the loss? It's not very rational behavior. Which suggests an answer that maybe there are some people with a financial interest in this manipulating the markets.

Either way, I expect Elon Musk might be buying some shares back at a discount just to make a point. There has been talk of buying back shares by Tesla in any case so there is plenty of support for that among share holders. At the current prices of the shares, that might actually not be the worst way to spend a few billion. And slightly evil of Elon Musk as well. So, entirely in character. Sell shares to buy Twitter, cause chaos there, watch Tesla's stock price collapse, buy back some Tesla shares at a discount, stock price goes back up again and Tesla continues making money and growing like nothing happened. Win win. Maybe Twitter survives all this. Maybe it won't. But does it matter if he comes out making a profit?