Tesla insiders are selling their stocks

You'd need more info than that.

I'm new to this stuff.. How does a bunch of share holders selling their stocks cause the prices to soar??

Are people just trying to buy up as much as they can with prices dropping?

The way someone shorts a stock is by borrowing a share from a shareholder and selling immediately, then they wait for the share price to drop and then buy the share back and return it to the original shareholder. A short squeeze is when a lot of people are shorting a stock (like TSLA where the last article I read one third of the shares are being borrowed to be shorted) and when there is good news or just an increase in the share price the shorters have to buy back the shares because they have limitless liability if the share price sky rockets. But when there are so many people having to buy back the shares this increases the price.

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Aggressive speculators may wish to follow the lead of Tesla’s insiders who have been selling their stock

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oopsie

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The valuation is crazy.

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While entirely possible (as is anything), it's also possible that it is severely undervalued still.

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All potential.

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All stocks are valued on potential. Don't we calculate value based on expected future returns? Let's think about Tesla's future. Tesla is currently selling cars faster than they can build them, on an advertising budget of approximately zero dollars. These cars are among the highest ever tested for safety, are extremely highly rated in customer satisfaction, and customer loyalty is almost at Apple-like cult levels. Tesla should have no problem doing the same with a crossover SUV, and with a cheaper sedan further down the road. Tesla expects to sell about 50% more Model S's this year than last (and I don't think they've missed a projection by much so far), so adding more models to the lineup should grow revenue even faster, but let's go conservative and say Tesla only grows revenue at an average of 30% over the next 10 years. That would drop Tesla's price/sales ratio from the current 13ish to a forward-looking 1.15 or so, placing it much, much more in the ballpark of the 0.4 of F and GM.

That is only looking at vehicle sales. Tesla is into more than that.

Tesla's supercharger network is already operational and growing rapidly. As far as I know, no other manufacturer has any or even has plans for them. It would not be surprising to me if Tesla would sell adapters and electricity to charge vehicles made by other manufacturers. These could end up being very, very profitable.

Tesla will most likely begin building their own batteries in a few years. This should, in addition to lowering the costs of building their own cars, also be a very profitable business itself.

So, yeah, obviously there is a lot of excitement surrounding Tesla and it could very well be overvalued, but there is plenty reason to believe it will realize (or even far exceed) its potential.

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eta: Elon has his shite together though

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Yup

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how long would it be before GM or some other car company currently selling for 8 times earnings was selling the same quality car?

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GM could start by learning how to make a fossil fuel car. Baby steps.