Can electric vehicle manufacturer Tesla (NASDAQ:TSLA) continue to be a darling on Wall Street after a swift rally in TSLA stock?

It’s not only possible but probable, as Tesla’s Superchargers (i.e., rapid EV chargers) are likely to become the U.S. industry standard in the wake of two deals with well-known automakers.

As we’ll discuss in a moment, Tesla’s valuation might make some contrarian investors bristle. I understand why they might object, but betting against Tesla in 2023 would be like standing in front of a steamroller. And, the last thing I want is for anyone to get run over.

TSLA Stock Looks Expensive, but Is It Really?

Let’s start by applying some old-school valuation metrics. Tesla’s GAAP trailing 12-month price-to-earnings (P/E) ratio of 71.85x is far above the sector median P/E ratio of 16.5x.

Tesla’s trailing price-to-book ratio of 16.12x and trailing price-to-sales ratio of 8.94x are much higher than the respective sectors medians (2.22x for P/B ratio and 0.87x for P/S ratio).

Indeed, valuations can get stretched after a stock goes on an 11-day run. Taking a short position against TSLA stock would be a fool’s bet. After all, the stock has blown out the short-sellers many times in the past despite Tesla’s lofty valuation.

It’s going to be hard to win any anti-Tesla bets when there’s good news in the headlines. For instance, as Bloomberg reported, “Tesla’s Model 3 sedans became eligible for the full US tax credit” (i.e., $7,500) “under a new criteria set by the US Treasury Department” recently.

Tesla Makes a Pair of Unexpected Deals

By now, you should be convinced that TSLA stock can continue to move higher. But if not, here are two similar news items that should change your mind. Tesla and Ford (NYSE:F) reached a game-changing agreement. Specifically, Ford EV owners will be able to use Tesla’s network of Superchargers.

Then, General Motors (NYSE:GM) effectively made the same deal with Tesla. Specifically, General Motors would allow its EV drivers to charge up with Tesla-branded Superchargers. So, again, it’s possible that Tesla’s EV charging stations will become the go-to industry standard in the U.S.

Piper Sandler analyst Alex Potter articulated the “industry standard” concept in a recently released note. “Other brands will be forced to join this consortium,” Potter posited. This will effectively establish “Tesla’s ‘North American Charging Standard’ as the preferred approach for EV charging” in the U.S., Potter added.

TSLA Stock Is a No-Brainer Investment for 2023

Piper Sandler analysts expect the aforementioned arrangements with Ford and General Motors to “bring in as much as $3 billion by 2030” for Tesla, Bloomberg reports. Thus, there’s no denying it: Tesla has the upper hand with its network of Superchargers.

I won’t deny that Tesla looks overvalued according to traditional metrics. Nevertheless, TSLA stock can – and most likely will – continue to gain value. Hence, it’s not too late to take a long position in Tesla as the rally is probably far from over.

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.