Tesla, the greatest fanboy stock of the past half decade, is well on its way to becoming nothing more than a memory. The news of a recent fatal crash of a Ohio man and the pending SolarCity buyout could two of many insurmountable difficulties that cause this company to fail.

Even with a perfect storm of negativity, and gross uncertainty, Tesla (NASDAQ: TSLA) shares still trade above $200.

Why is that? How can so many shareholders simply overlook the fact that Tesla is still a long way from making money? Not to mention the recent move to buy SolarCity (NASDAQ: SCTY), which is a deal filled with corporate governance red flags.

To start, Tesla founder and CEO – Elon Musk – has created a cult-like following among investors, especially within the entrepreneurial ecosystem. Now, shares did go from $280 to $150 a share after we called Tesla the market's biggest mistake of 2015. However, the hype of Tesla becoming the next Apple (NASDAQ: AAPL) has overshadowed any reality as shares are trading back over the $200 mark.

The Tesla story includes a grand plan, and Musk has certainly been praised for his grandiose visions in the past. Musk, who also founded SpaceX, has laid out an aggressive plan to colonize Mars within the next decade. But is he stretching himself just a little too thin these days?

More Dire Than Ever

The key for Tesla shareholders, and potential big dilemma is that things look worse than ever. There's a perfect storm brewing against Tesla, which is being further fueled by the death of an Ohio man driving a Tesla, whose death marks the first time someone has died in any car using an autopilot feature. This raises questions about the future of driverless cars, and Tesla's role in it, as it's been hit with several car fires in the past year.

What's more is that in the second quarter we saw another round of missed expectations, but what could ultimately send Tesla into its death spiral is its purchase of SolarCity Corp. for roughly $2.8 billion in an all-stock deal.