Its market cap was about 4 to 5x higher than any other car company. That kind of difference is hard to justify based on tangibles such as 'well, their brand has more value' or 'well, they are just.. better at building cars than their competitors'. Sure, but, 5x with no way that other companies can catch up in the next 10 to 15 years?
Instead, it 'worked' by peddling itself as tech company that so happens to make cars.
The problem is, that veneer requires upkeep. Specifically, actually selling to the masses requires being competitive with them, but, lowering prices and acting like a car company would thus starts eating away at the idea that Tesla is a tech company and not a car company.
Screwed if you do, screwed if you don't. Because the car companies have 'caught up' and are now making all-electric sedans with tech integration. And the car industry is trying to squeeze out the all-electric sedan with cheaper hybrids. Tesla can no longer rely on 'sports brand uniqueness' (that market is no longer solely tesla's, and it is far too slow for tesla's current valuation).
I have no idea how to solve for that. I'm assuming tesla's stock is on its way to be ~25% of what it is now.