Tesla has a 20% margin and are still bringing online many measures to drastically reduce their costs. The complexity reduction in the upcoming Model Y's with dual gigacasts and batteries is massive. If they have to compete on price, they will. They know price competition is coming and are planning for it. Mass market was in their long term plan from day one. But they won't lower their price until they're forced too. Too soon would just leave money on the table like Hyundai is.

But for now they are competing quite well against the Ioniq 5. Dealerships are now taking reservations for 2025 models of the Ioniq 5. Many people would rather pay an extra $16,000 than wait over 2 years.

I don't think Tesla is overvalued. Some (but not all) of the traditional manufacturers are undervalued. Which ones, though, that's the hard question.