The Best Electric Vehicle (EV) Stocks to Buy with $1,000 Right Now

Everybody wants to find the next one Tesla’s (NASDAQ:TSLA). But investing in the electric vehicle (EV) space can be difficult. Many EV companies have gone bankrupt over the years, and it can be difficult to separate the good from the bad.

Fortunately, Tesla has created a clear template for success. And right now I have one EV stock This looks extremely attractive. But there is only one investment strategy that is likely to be successful.

This is how Tesla achieved great success

In 2006, Tesla CEO Elon Musk publicly revealed the “Secret Tesla Motors Master Plan.” “As you know, Tesla Motors’ first product is a high-performance electric sports car called the Tesla Roadster,” the article began. “However, some readers may not be aware that our long-term plan is to create a wide range of models, including affordable family cars.”

Musk summarized Tesla’s master plan as follows:

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

Today, Tesla is a great symbol of success in bringing long-term visions to life. The Tesla Roadster was successful, but its market was always small, given its price of over $100,000.

Tesla needed to prove its manufacturing skills and show the public that electric vehicles could be cool and exciting. He used this success to design, manufacture and introduce two new models: the Model S and the 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 launch two new mass-market models, the Model 3 and Model Y. These two models, with much more affordable price points, allowed Tesla to grow in the market. revenues It has increased by more than 1000% in the last decade.

TSLA Revenue (TTM) data YCharts.

Tesla’s master plan worked wonders valuation. The company’s value is currently around $800 billion. Meanwhile, another company is valued at just $11 billion, but is flawlessly executing Tesla’s proven master plan.

Rivian could be the next big EV stock

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

In 2018, Rivian announced the launch 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 amazing. Consumer Reports found Rivian to have the highest customer satisfaction and loyalty levels of all products automobile manufacturer — electric or otherwise. Nearly 86% of Rivian owners said they would buy another Rivian. No other brand could break above the 80% mark.

What will Rivian do with its newfound reputation and sales base? That’s exactly what Tesla is doing: Making more affordable cars. Earlier this year, the company revealed three new models: R2, R3 and R3X. All are expected to launch with starting prices under $50,000. Meeting that price point is what helped put Tesla on the map for millions of people. If Rivian can pull this off, it should be a hit.

If Rivian can copy Tesla’s success, why market value Hovering at just over $10 billion? First of all, the new models are not expected to hit the roads until 2026 at the earliest. Second, the necessary production facilities have not yet been completed. Third, vehicle production is capital intensive, so the company still loses money at a rapid rate. But management expects to achieve positive results gross profit 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’s running a proven growth model and has demonstrated its ability to produce vehicles that customers love. But the next few years will be crucial. If Rivian can implement it, it will become a household name like Tesla, which will likely cause a rapid increase in its valuation.

There is no guarantee that the company will maintain its ability to tap capital markets cost-effectively or bring its production capabilities up and running quickly. It will have to market its vehicles in a hyper-competitive industry. But it’s that uncertainty that’s currently giving patient investors a lucrative entry point into Rivian shares. If you can remain patient, Rivian’s rise could eventually mirror Tesla’s rise.