The thing about Tesla is that short-sellers were right about the company being overvalued but wrong about the reasons people invested in Tesla. Tesla's FSD was

The thing about Tesla is that short-sellers were right about the company being overvalued but wrong about the reasons people invested in Tesla. Tesla's FSD was obviously anything but; Tesla could have never gotten most of the EV market, unavoidable production limits made sure of that even before considering Tesla's patent stance (of not holding EV patents). However, many investors actually held Tesla as an 'ethical' climate-based contribution and never cared that much about profitability or hype or value. Musk was useful in promoting the brand by keeping it in the spotlight. Now, with other carmakers finally entering EV in force + Musk being, well, Musk, this contribution factor will strongly reduce. The risk now is overcorrection in the other direction - Tesla is too firmly established to go away.