What Happened? Shares of electric vehicle pioneer Tesla (NASDAQ:TSLA) fell 7.4% in the morning session after CEO Elon Musk announced over the weekend his intention to form a new political party, the "America Party.

Despite these issues, Tesla investors appear to be convinced that the company will experience a surge in sales trends at some point. This is evident by the wild premium the stock commands. Shares trade at a price-to-earnings ratio of 169 as of this writing. A valuation like this bakes in huge sales and earnings growth for years to come.

During Tesla's earnings call earlier that month, Musk promised shareholders he would spend more time at HQ in Austin, Texas, this quarter and wrap up his work in Washington. Since that day, the stock has been up double digits,