Because Tesla is. Unlike the traditional automakers that have no room of growth and in a perpetual stagnation, Tesla has potential being a partially automative and partially tech industry. They can even have their own mobile phones if they want to. Or robots and stuff.
What Mercedes, Porsche, Audi can do aside continue to produce the cars over and over again until they are overtaken by somebody else? Hell, both EU and USA need tariffs to compete with chinese automakers.
Not quite. Tesla has a high valuation mostly because traditional auto carries an enormous amount of debt on their balance sheets. I think Tesla is one economic downturn in a high interest rate environment from meeting the same fate. Once an auto company is loaded with debt, they get stuck in a low margin cycle where the little profit they make has to go into new debt for retooling and factories. Tesla is very much still coasting from zero interest rate free VC money times.
