The fact TSLA is valued more then all the auto manufactures combined is absurd. You're naive to think big auto is just going to sit on the sidelines. Big auto has the infrastructure and production lines to mass produce fully electric vehicles for a fraction of the cost of a TSLA, something TSLA will never be able do. Ford is already leading the charge with the F-150 Lightning and converting old factories into fully electric vehicle production plants. TSLA is just as overhyped as Elon Musk.
I would have completely agreed with you and your thesis if Tesla wouldn't have been making breakthrough technologies everyday. The sole fact that Tesla is the market maker in almost every product they try to step in is the reason that their stock price command such huge premium. I do agree it might look overvalued if you see the financials and especially that the company is actually running on operating losses. But the primary cost of R&D is the prime reason behind the huge losses of the company. Also despite operation losses company is Cash. positive infact has such huge cash reserves that it decided to invest in Bitcoin too. I do agree it is slightly overvalued but if you add the sentimental value of Tesla it's round about exactly where it should be. Moroever, I don't think Tesla would correct a lot instead I think it's financials will soon start reflecting the reason for such a price.