Why is Tesla’s stock price so high compared to traditional automakers?

I cannot wrap my head around Tesla’s valuation. The company sells cars. That’s mostly it. Yet the market acts like Tesla has already reinvented transportation, energy, robotics, and artificial intelligence, all at once.

Tesla sells a fraction of the cars Toyota does. A fraction. Toyota is out here delivering millions more vehicles every year, yet Tesla’s market cap is treated like Toyota is the junior player trying to catch up.

Profit margins have been falling because Tesla keeps slashing prices just to move product. If this were any other car company, that would be a bad sign. For Tesla, investors cheer like it unlocked infinite wealth.

The “no competition” narrative died years ago, but the stock still behaves like Tesla owns the entire EV future and everyone else is building museum pieces.

Everything bullish seems to rely on sci-fi promises. Robotaxis everywhere. Full Self Driving that magically becomes perfect. Tesla somehow turning into a software licensing giant. The energy business transforming the grid overnight. It all sounds cool… but none of it is meaningfully happening today.

So what I’m trying to understand is this:

• Is there any economic basis for pricing Tesla like it already dominates industries it can barely prove it belongs in? Or is this valuation just a collective hallucination powered by hype and Elon’s tweets?

I’d honestly love to hear what the rational explanation is supposed to be.