Tesla’s stock has dropped by nearly half in three months. Even so, investors are still debating whether Elon Musk's electric-vehicle maker remains overpriced. The company's market capitalization has dropped 45% since hitting an all-time high of $1.

Electric vehicles (EVs) are in rough terrain. While U.S. EV sales rose 7% last year to 1.3 million in the U.S., the Trump administration's not-so-friendly stance toward electric vehicles has spooked some investors and ignited concerns that growth among EV makers could be stifled.

Tesla’s stock has plummeted 45% since its December peak, erasing $1.5 trillion in market value as EV sales falter and competition rises. Despite this, investors cling to Elon Musk’s promises of robotaxis and AI-driven growth,