The Ultimate Electric Vehicle (EV) Action to Buy for $1,000 Right Now

Everyone wants to find the next one adze (NASDAQ:TSLA). But investing in the electric vehicle (EV) space can be difficult. Many electric vehicle companies have gone bankrupt over the years, and separating the good from the bad can be difficult.

Fortunately, Tesla has set a clear template for success. And right now, there’s a stock EV that looks extremely attractive. But there is 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, Tesla Motors’ initial product is a high-performance electric sports car called the Tesla Roadster,” his essay began. “However, some readers may not be aware that our long-term plan is to build a wide range of models, including affordable family cars.”

Musk summarized the overall plan for Tesla:

• Build a sports car
• Use this money to build an affordable car
• Use that money to build an even more affordable car

Today, Tesla is a huge symbol of success when it comes to executing long-term visions. The Tesla Roadster was a hit, but given its price tag of over $100,000, its market was always small.

Tesla needed to demonstrate its manufacturing skills and show the public that electric vehicles could be cool and exciting. He used this success to design, build and deliver two new models: the Model S and the Model X. These models were still expensive, but they 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 the Model Y. These two models, with much more affordable price points, allowed Tesla to increase its revenue by over 1,000% in the last decade. .

TSLA Revenue (TTM) data from YCharts.

Tesla’s master plan has done wonders for its valuation. The company is currently worth around $800 billion. Meanwhile, another company is valued at just $11 billion — yet executes Tesla’s proven master plan flawlessly.

Rivian could be the next big electric vehicle stock

When it comes to following Tesla’s template for success, few electric vehicle companies look as attractive as Rivian (RIVN 3.85%).

In 2018, Rivian announced the debut of the R1T and R1S models. Like Tesla’s previous models, the R1T and R1S were ultra-luxury, high-quality, no-compromise vehicles with price points that could easily exceed $100,000 with certain options. Consumer feedback has been fantastic. Consumer Reports found that Rivian has the highest levels of customer satisfaction and loyalty of any automaker — electric or otherwise. About 86% of Rivian owners said they would buy another Rivian. No other brand was above the 80% mark.

What will Rivian do with its new reputation and sales base? Exactly what Tesla did: build more affordable cars. Earlier this year, the company unveiled three new models: the R2, R3 and R3X. All are expected to debut with starting prices under $50,000. Meeting that price point helped put Tesla on the map for millions of people. If Rivian can execute, it should be successful.

If Rivian can replicate Tesla’s success, why is its market cap just over $10 billion? First, its new models aren’t expected to hit the road until 2026 at the earliest. Second, the necessary production facilities are not yet complete. Third, the company is still losing money fast because vehicle production is capital intensive. However, management expects to reach positive gross profits by the end of 2024. Finally, Rivian is trying to compete in a market segment — electric vehicles — that has seen many bankruptcies over the years.

It’s clear that the market is skeptical of Rivian’s plans, even though it is executing on a proven growth model and has demonstrated its ability to produce vehicles that customers love. The next few years, however, will be crucial. Rivian will become a household name like Tesla if it can execute, an outcome that will likely see its valuation expand rapidly.

There can be no assurance that the Company will retain its ability to access the capital markets affordably or to bring its manufacturing capabilities up to speed quickly. They will have to market their vehicles in a hyper-competitive industry. However, it is this uncertainty that gives patient investors a profitable entry point into Rivian stock right now. If you can stay patient, Rivian’s rise could eventually mirror Tesla’s.