Tesla over copycats

Rivian makes fantastic trucks. Anyone who's seen one up close can't help but admire the engineering. But here's the rub: since listing, the share price has collapsed by almost 90%. That's the lesson small-cap EVs like Rivian (and Lucid, for that matter) keep teaching us, a great product is not the same thing as a great investment.

Too often, investors go hunting for "the next Tesla" the way people buy lottery tickets. The odds are about the same. Most of these fledgling companies burn through cash, struggle to scale, and eventually fade. Chasing them is exciting, but it's not how lasting wealth is built.

Our philosophy here at Vestact is to back high-quality businesses with proven earnings power and the quality to go the distance. The compounding happens not in the meme hype cycles but in the consistency.

Which brings us to Tesla. Unlike its smaller rivals, Tesla scaled production, built a global charging network, and created a brand that is as much cultural as it is automotive. The numbers speak for themselves: since its IPO in 2010, Tesla has returned over 26 978% to investors, compared to about 650% for the S&P 500.

That's why we like Tesla. Not as a lottery ticket, but as a business that has already beaten the odds.