Because without the remnants of the Musk-hype it'll be worth even less than the current amount, maybe 2x Ford. Investing in Tesla was, for many people, investing in Musk and his vision.

Because actual shareholders read the financial statements, and therefore know how impressive Musk's performance has been so far, unlike people that literally haven't read further than the P/E.

Of course maybe Q4 and future quarters may change that, but there's no reason yet for shareholders to want another CEO.

I’d be worried he start pulling in the Twitter management style and do poorly considered large scale changes on a whim. Basically: if he’s an obvious liability at Twitter, can he be the safe bet at Tesla? And can a man really be expected to be CEO of two large companies (not to mention three or more)? I’d not go anywhere near an instrument whose value depends on someone who has suddenly become extremely erratic. I think that’s the reason for the drop more than anything else. Shareholders are doubting Musk already.

They are doubting him (including myself). But nobody's going to ask for a new CEO as long as Tesla continues to grow like it has been. Only if Tesla misses a few quarters, people would actually consider replacing him.

So why are "actual shareholders" selling?

That's just the stock market, I wouldn't read too much into it. Wait for Q4 earnings to draw any real conclusion based on actual performance and not stock market price.

But to address your question, it's completely compatible to think both that a) TSLA is overvalued b) Elon is the best CEO Tesla could have

Tesla without Musk hype would be worth much less than it is even now.

Because Tesla (as a corporation) is FTX like fraud, just more sophisticated. Board consists of Elon family and close friends.

Tesla’s Board of Directors values their friendships with Musk over their fiduciary duties or corporate governance.