Tesla's market valuation (market cap) is 16x that of GM despite having half the revenue, although with 33% more profit last year. What is the bull case here? They don't have a monopoly on EVs anywhere anymore. Is Tesla really expected to capture the automobile market?
Investors operate on discounted net present value of future income streams. Perceived future income streams, that is. Investors may be wrong, and they know it. But, they tend to act and think similarly, so quite often you will see a band-waggon effect in various investment categories.
At the moment the EV market is in (entering, actually) the growth phase and the traditional car market has topped the curve ages ago. Yet there is not many obvious recipients for investor money in the new market as most actors are still "one foot in the grave" ie. they are also in the traditional car industry. There are not many "EV-only" actors. This by itself dictates a premium (I am not saying it is sane behaviour on the long term, only that it is predictable, explainable, and somewhat logical).
So, Tesla gets far too much capital going in. Because, where else should it go? It's perceived as an unicorn at the moment. Investors know that it will not continue to be so as a growing market in early growth phase means that dynamics will change dramatically along the way, and future outcomes are close to impossible to predict as it hasn't really been invented yet.
But, cars are a massive industry. And, investors figure they will continue to be. So they have to be in there somewhere. And Tesla is new growth while the established players are playing on an entirely different field. So, there is potential.
As long as there is potential new investors will invest, and you will have positive returns. This means that you are not wasting your money investing in Tesla, even though you know positively that at some point the market will change, and there is no law dictating that Tesla will emerge as the winner (or survive at all).
OTOH many case studies I've read seem to imply that those that "invent the category" seem to disappear longer down the road as established players in related industries (or, entirely new ones) ramp up and enter. But by then investor money will have moved on too. Or, so the individual investor thinks. S/he might be right, or OOB - time will show. If you're not invested yourself you need not worry.