(NASDAQ: TSLA) has been on an absolute tear, with shares nearly doubling over the past few months. Investors expect big things from the electric vehicle (EV) company over the coming years. It has continually innovated, pushing into new markets like autonomous vehicles and humanoid robotics. Stock price momentum can be powerful. How high shares ultimately go is anyone's guess. Ultimately, the business's fundamentals will either support its rising share price or act like gravity and pull it down to earth. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Should you buy Tesla stock while it's trading under $450 per share? Here is what you need to know. It's clear what's driving Tesla's stock higher, and it's not the EV business One of the most common arguments supporting the stock is that the company isn't like other automotive manufacturers. Due to its other segments, some investors consider it a technology company. The idea is that the planned Cybercab (and an autonomous vehicle fleet) and Optimus (humanoid robotics) could each represent vast opportunities over the next decade. I would guess that is what has driven the stock's strong performance. CEO Elon Musk has aligned himself well with the Trump administration, which could theoretically help Tesla navigate the legal and regulatory landscape to launch its autonomous ride-hailing business. Since the Nov. 5 election, the stock price is up nearly 70%. Musk estimates ride-sharing will begin in Texas and California this year, with the Cybercab entering volume production in 2026. He also hopes to begin selling Optimus robots in 2026. The company is still developing the robot's localized artificial intelligence (AI), which allows it to read and process its surroundings. This technology is similar to its full self-driving (FSD), and Musk recently said that Tesla now has the appropriate computing capacity to continue developing it. These are exciting opportunities but come with questions Musk believes that Tesla's long-term value is far more dependent on these emerging segments than on its existing automotive business. However, investors should be careful about how disconnected they let the future get from the present. The financial reality is that its vehicle business, which just saw its annual production volume drop for the first time in 2024, still generates virtually all of the company's revenue and profits. There is also a clear motivation to label it as a technology company rather than an automotive business. Its valuation far exceeds that of any of its peers. For example, the stock currently trades at over 15 times sales. Toyota presently generates higher gross profit margins than Tesla, but trades at a price-to-sales multiple (P/S) of less than 1. Yes, Tesla is growing faster, but does that justify such an extreme valuation gap? TSLA PS Ratio Chart