Investors are waking up to the fact that they are investing into a car manufacturer, not a software stock.

Also, their EV-only strategy makes them vulnerable to the slower than expected uptake of electric vehicles in many markets. Lastly, it is difficult to see Tesla maintaining a technical edge. Other manufacturers have shown to be able to produce electric drivetrains. And Tesla’s full self driving technology is difficult to assess. They sure did make a lot of noise, making it look like they are ahead of everyone else. Whether that’s the case is anyone’s guess - most likely it is not.