1 No-Brainer Electric Vehicle (EV) Stock to Buy Right Now (Hint: It’s Not Tesla)

1 No-Brainer Electric Vehicle (EV) Stock to Buy Right Now (Hint: It’s Not Tesla)

Tesla has proven to be one of the best investments of the past 10 years. Over that time period, sales by the ground-breaking electric vehicle (EV) maker have soared nearly 2,900% even as its stock price has vaulted by nearly 1,400% — substantially enriching its early investors.

But the electric vehicle industry remains in its infancy, and so it pays to seek out current opportunities. For those looking to invest in the next Tesla, there’s one up-and-coming electric car stock you need to be aware of now: Rivian Automotive (NASDAQ: RIVN). Here’s why.

You’re likely well aware of the trade-off between risk and reward. But in practice, this trade-off is harder to determine. After all, there’s nothing guaranteeing you a higher potential payoff for taking on extra risk. It’s important, then, to stack the odds in your favor. That’s exactly what investors are getting with Rivian Automotive stock right now.

Let’s rewind time and look at what Tesla was up to nearly a decade ago, when its sales base was only around $5 billion. At that time, the company only had two high-end luxury models for sale: the Roadster and the Model S. Its first crossover, the Model X — also a luxury vehicle priced above $100,000 — would debut soon, but the market was growing increasingly wary that Tesla would ever be able to crack the mass market in any major way.

In 2014, Tesla shares were priced around 10 times sales. In 2016, that valuation slipped to 8 times sales. And by 2020, Tesla shares were priced below 2 times sales. CEO Elon Musk would later reveal that the company was “about a month” away from bankruptcy.

Would you have invested in Tesla right then? Without knowing the future, most investors would have stayed far away. Yet this was one of the best times in Tesla’s history to jump in. As sales from its mass market vehicles — the Model Y and Model 3 — began to gain traction, Tesla’s revenue more than tripled from 2020 through 2024, from $30 billion to more than $90 billion. Shares have soared more than 1,000% in value over the past five years due to the success of these two vehicles.

Right now, Rivian is about to follow the same trajectory. Earlier this year, it announced three new mass market models: the R2, R3, and R3X. Similar to what Tesla used to offer, Rivian only currently has a couple of high-end luxury vehicles for sale, the R1S and R1T, both of which cost around $100,000. The R2, R3, and R3X, meanwhile, are expected to be priced under $50,000 — similar to the Model Y and Model 3.

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