Which way is Tesla (Tesla Stock Quote, Chart, News, Analysts, Financials NASDAQ:TSLA) headed? With climate change and electrification becoming more front and centre, you\u2019d think everyone would be on board with the industry\u2019s current EV champion, but opinions continue to be very divided over Tesla as an investment proposition. Some say hold your nose and buy, even at these high prices, since you don\u2019t want to miss out on the sea change in automotives. Others, including Stan Wong of Scotia Wealth Management, say Tesla may be a great company but the stock is just too expensive to warrant your hard-earned dollars. Tesla\u2019s share price rose this week with the release of glowing production and delivery figures for the first quarter of 2021. The company reported delivering 184,800 vehicles and producing 180,338, up from the fourth quarter of 2020 where it delivered 180,570 vehicles and produced 179,757. \u201cWe are encouraged by the strong reception of the Model Y in China and are quickly progressing to full production capacity. The new Model S and Model X have also been exceptionally well received, with the new equipment installed and tested in Q1 and we are in the early stages of ramping production,\u201d Tesla said in an April 2 release. The news bounced the stock upwards to take back some of the ground lost in recent weeks with the wider market pullback on tech and growth names. Tesla is now down five per cent for 2021, which follows on the stock\u2019s incredible run in 2020 where it returned a whopping 749 per cent. All those gains have shareholders celebrating and market watchers at odds over where the stock is headed from here. Count Wong among the wary when it comes to Tesla. \u201cWhat you want to watch with Tesla is what\u2019s happening with the rotation into value from growth,\u201d said Wong, Director of Wealth Management at Scotia, who spoke on BNN Bloomberg on Wednesday. \u201cIt seems as though the last week or so, some of these higher growth names have started to pick up a little bit of steam and have stopped falling.\u201d \u201cA lot of that has to do with the fact that long-term yields in the US have stopped moving higher so the growth stocks are not in so much danger given the fact that rates have not moved higher. Rising interest rates do have a negative effect generally speaking on high growth type of stocks, including technology names including names like Tesla,\u201d Wong said. \u201cThe other thing to watch out for is if Tesla breaks down below the 200-day moving average that could show a negative technical indicator,\u201d Wong said. \u201cRight now, that\u2019s at about $527-$530.\u201d Part of the more recent buzz around companies like Tesla has to do with the huge infrastructure package introduced by US President Joe Biden at the end of March. The $2-trillion package would see investment in transportation, water systems, electric grids and broadband, with electric vehicles getting earmarked $174 billion for rebates on car sales, tax incentives as well as the build-out of electric charging stations across the country. That should push Tesla even more into the forefront, says Morgan Stanley analyst Adam Jones, who argued in a note on Wednesday that Tesla\u2019s lead over other car companies in the EV space will be a difference maker. \u201cIt will likely be complicated by a labyrinth of national and local laws that will present advantages and disadvantages to various automakers, depending on the year that you choose to analyze,\u201d Jones said. \u201cPut it all together and we believe auto investors face greater risk not owning Tesla shares in their portfolio than owning Tesla shares.\u201d Wong is not convinced, however, that even the promise of future dominance in the EV space is enough to justify Tesla\u2019s current share price. \u201cWith Tesla you\u2019re paying on a forward price-to-sales basis 13 times. To put that in perspective, the S&P 500 is trading at 3x price to sales,\u201d Wong said. \u201cSo, absolutely, you\u2019re paying for future growth and you\u2019re paying for future revenues. The problem is if interest rates keep moving higher, those future revenues means less and less to investors today. To put Tesla\u2019s valuation into perspective, at a $664-billion market cap Tesla is currently worth more than the next half-dozen automakers combined, or roughly, the rest of the auto industry. And while there is some catchup to be done on the part of legacy automakers, Wong says it will happen eventually. \u201cTesla is absolutely a great company. The product is strong. But, from a fundamental level, is Toyota, is BMW, is Mercedes going to sit on the sidelines and let Tesla continue to take market share in the EV market? Probably not, so competition is also a concern,\u201d he said. \u201cWe don\u2019t own in our portfolio I think for investors who want to be more in the high growth\/speculative part of the market you can hold a little bit depending on your time horizon, your risk objectives and so forth, but we just don't have it in our portfolio,\u201d Wong said.