Long-term Tesla ( TSLA 2.27%) shareholders have plenty of reasons to celebrate. Back in 2010, the shares were trading slightly above $1. Today, the price has soared past $420. An early investment of just a few thousand dollars would now be worth over $1 million.
This tremendous performance has motivated many investors to search for the next major electric vehicle stock. However, identifying a company that can replicate Tesla's journey has been extremely challenging. Over the last decade, more than 30 EV start-ups have failed. Tesla has proven to be a rare exception among them.
Yet, there is a method to spotting the next Tesla. By applying this approach, it's possible to single out an EV stock that is on the verge of hitting a significant growth milestone in 2026.
This simple strategy could lead you to the next Tesla
To grasp how Tesla achieved its dominant position, you first need to see why so many EV start-ups have disappeared in recent years. The main reason is the industry’s massive demand for capital. Launching a carmaker from the ground up requires billions of dollars and years of perseverance. Extensive infrastructure must be established just to manufacture vehicles. On top of that, countless regulatory hurdles must be cleared before production can even begin. Electric cars are also much more technologically complex, demanding both software and hardware integration that traditional automakers don’t have to consider.
It’s a challenge to find backers who are willing to pour billions into a company that might not turn a profit for a decade or more, just for a chance that it can deliver cars people want — and make them at scale with healthy margins. While the huge potential of the EV sector has drawn many entrants, the smallest setback can scare away investors, which can be fatal for a business that needs a steady flow of new capital to bring its plans to life.
It’s hardly surprising, then, that only a few dedicated EV manufacturers today actually have vehicles available on the market. Tesla now delivers close to 2 million cars annually. Meanwhile, most of its American rivals produce only a small percentage of that volume.
Tesla’s achievements bring up an important question: How did the company manage to gather enough momentum to reach the scale where it no longer depended on outside funding? The answer lies in producing cars at prices accessible to mainstream buyers, something that itself requires achieving sufficient volume. For instance, if an EV maker can offer vehicles below $50,000 — a price range nearly 70% of U.S. consumers are aiming for in their next car purchase — growth can accelerate rapidly. At present, over 90% of Tesla’s sales consist of its two most affordable models: the Model Y and Model 3.
This is the key to investing in the EV space: focus on companies preparing to launch mass-market, affordable vehicles soon. Vague promises of budget models years in the future aren’t enough, as those firms would still need to depend on external financing until then. Ideally, these new models should be set to debut in the near term — and there is one EV stock that fits this description perfectly.
Image source: Getty Images.
Rivian is about to experience Tesla’s most powerful growth trigger
Of all the companies following in Tesla's footsteps, Rivian ( RIVN -1.84%) is the closest contender. Recently, confirmation arrived that Rivian’s first affordable model — the R2, starting at just $45,000 — is scheduled to enter production in early 2026. “R2 is our team’s main priority and a crucial milestone as we pursue our goal of delivering millions of vehicles each year,” Rivian’s CEO shared with investors in August.
After the R2 is up and running, Rivian plans to launch two more affordable models — the R3 and R3X. This would give the company a lineup of three budget-friendly EVs, surpassing Tesla’s current offering by one.
If the R2’s debut is successful, Rivian could achieve significant economies of scale. The introduction of these accessible vehicles will also help reduce costs elsewhere in the business, allowing the company to lower production expenses for its two premium models. Altogether, Rivian is positioned for a potentially transformative 2026 and future growth.
