Comment by d--b
Tesla can compete with BYD all right. They have a better brand, they are still a status symbol. They could totally build the best cars if they wanted to.
But competing with BYD would mean becoming "just a car company". And that's what Tesla can't do. Too many promises have been made, the stock's been pumped too high, and there is no way a just-a-car company can justify that market cap. Their only way is to go for the moonshot now. Maybe once the moonshot fails, stock goes down to "normal", and Tesla can compete with BYD.
What market does Tesla have?
They won't prosper in China which has the biggest car market and better cars, that also happen to be cheaper. In the US, the second largest car market, they reduced their market in half. In Europe their sales are shrinking even as total EV sales increase. In India and Brazil, also in the top 6 largest car markets, their cars are too expensive so they sell a few *dozen* cars per year.
Even if they tried to be a car company with correct valuation they'd have nothing to offer to most of the market.