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It's speculation, and irrationality, neither of which is new to the stock market.

People think the stock will go up, because it's a hot company with a lot of press, so they buy it. More people buy it, and it becomes a self-fulfilling prophecy: the stock goes up.

Eventually Tesla will either find their groove and be a breakout success, or the stock price will fall. It's just a matter of time, and depends on when people get tired of waiting.

Remember also that VW is, comparatively, a super boring company.

These are all bad reasons for Tesla's stock price, but they are reasons.




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