But there's no law that says prices must be based on standard financial analysis.

You and I and a million other people might run away from Tesla's valuation but that doesn't mean that the market must.

I think it's very obvious that the historical norms that governed and explained pricing in the stock market no longer apply, for better or worse. Between the massive manipulation of the markets by central banks to the rise of the retail investor (and social media, meme stocks, etc.), there are a lot of factors in play that weren't a thing 30 years ago.

People grossly undervalued the IPOs of Amazon and Microsoft.