Tesla's stock dropped nearly 45% in three months, but its market valuation remains high because investors believe in its future autonomous vehicle technology. Despite falling sales and profits, Tesla still holds a market cap of $845 billion,

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.

Musk thinks Tesla's profits can go up 1,000% in five years. Its electric vehicle business is struggling right now, and its new products are taking a while to come to market. The company is unlikely to grow its profits this quickly,