Everyone wants to find the next Tesla (NASDAQ: TSLA). But investing in the electric vehicle (EV) space can be difficult. Many EV companies have gone bankrupt over the years, and separating the good from the bad can be difficult.
Thankfully, Tesla established a clear template for success. And right now, there’s one EV stock that looks extremely attractive. But there’s only one investment strategy likely to succeed.
This is how Tesla became a massive success
In 2006, Tesla CEO Elon Musk revealed “The Secret Tesla Motors Master Plan” to the public. “As you know, the initial product of Tesla Motors is a high-performance electric sports car called the Tesla Roadster,” his essay began. “However, some readers may not be aware of the fact that our long term plan is to build a wide range of models, including affordably priced family cars.”
Musk summarized the master plan for Tesla:
Today, Tesla is a huge symbol of success when it comes to executing on long-term visions. The Tesla Roadster was a success, but given its $100,000-plus price point, its market was always small.
Tesla needed to prove its manufacturing chops, and show the public that EVs could be cool and exciting. It used this success to design, build, and deliver two new models: The Model S and Model X. These models were still expensive, but introduced Tesla to hundreds of thousands of new owners.
Tesla then used its reputation and access to capital to debut two new mass market models, the Model 3 and Model Y. These two models, with much more affordable price points, allowed Tesla to grow its revenue by more than 1,000% over the last decade.
TSLA Revenue (TTM) Chart
Tesla’s master plan worked wonders for its valuation. The company is currently worth around $800 billion. Another company, meanwhile, is valued at just $11 billion — yet it’s executing Tesla’s proven master plan flawlessly.
Rivian could be the next big EV stock
When it comes to following Tesla’s template for success, few EV companies look as attractive as Rivian (NASDAQ: RIVN).
In 2018, Rivian announced the debut of its R1T and R1S models. Like Tesla’s…
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