It's become a harsh correction, with the stock price now down 53 per cent since December.
The massive valuation can only have assumed that Tesla brand would become much more than an automaker, and as such the price is prone to wild swings in sentiment.
At the moment Wall Street is leaning towards the company being a car company again, which is ultimately a low margin sector.
Buying stocks, sectors, and indexes for value may become fashionable again soon.
