Is Rivian the 10X Stock You've Been Looking For? (Hint: Yes.)

Finding stocks with 1,000% potential upside is difficult. But it's not impossible. Just ask long-term Tesla(NASDAQ: TSLA) shareholders. Since going public, Tesla shares have risen in value by more than 31,000%.

Of course, Tesla's rise took decades to fully play out. That means shareholders needed to demonstrate extreme levels of patience. But if you believe you can hold for long periods full of dramatic ups and downs, there are two reasons to believe that Rivian(NASDAQ: RIVN), one of Tesla's most promising competitors, could ultimately deliver 1,000% returns for shareholders.

1. Rivian is already replicating Tesla's recipe for growth

Tesla stock didn't rise 31,000% overnight. In fact, there were huge stretches of stagnation along the way. From the start of 2013 through the summer of 2019, for example, Tesla shares rose in value by just 30%. From the middle of 2019 through the end of 2021, however, shares rose in value by more than 2,000%.

There are two lessons from this case study.

First, patience is needed when investing in high-growth potential stocks. You never know exactly when the market will decide to rerate shares heavily.

Second, growth catalysts don't appear overnight, even if the market rewards those catalysts over a short period of time. The force behind Tesla's massive stock price spike largely stemmed from the massive success it experienced with its Model Y. But the launch of the Model Y -- which occurred in 2020, with sales ramping up through 2021 and 2022 -- was years in the making.

Tesla filed a trademark for the Model Y way back in 2013 -- roughly seven years before the crossover EV became widely available. But the process was more involved than securing naming rights. Over the past decade, more than 30 EV startups have gone bankrupt or disappeared. That level of failure is largely a result of how capital intensive the EV industry is. Companies need huge amounts of physical infrastructure plus billions of dollars in capital available for years at a time before vehicle sales are even possible.

Tesla didn't just start Model Y production overnight. It started small, scaling up facilities to produce luxury vehicles like the Model S and Model Y. Then it launched an affordable sedan, the Model 3. Only then did it attempt mass production of the Model Y, currently the best-selling car model globally -- its third straight year at the top.

Rivian's current sales base pales in comparison to Tesla's revenue streams. But its strategy for growth has been eerily similar. The company spent years and many billions of dollars scaling production of two luxury vehicles: the R1T and R1S. With a proven ability to scale EV production, the company is getting ready to begin shipments of its first affordable vehicle: the R2 SUV. Two additional vehicles priced under $50,000, the R3 and R3X, will begin production soon.

Image source: Rivian

The launch of its R2 SUV could be Rivian's Model Y moment, a catalyst that could send revenue, profitability metrics, and its stock price significantly higher. Deliveries to customers start this summer, with production set to scale through the rest of 2026.

2. Like Tesla, Rivian is going all in on AI

Tesla's core auto business is in trouble. Sales actually declined last year. And yet Tesla shares reached new all time highs. Why? Because Tesla's bets on AI could allow it to target lucrative markets such as the robotaxi industry, which experts believe should be worth several trillion dollars globally.

Rivian isn't letting this opportunity pass it by, either. Management has announced a huge pivot in capital spending, intending to introduce AI into its factory production process, its in-vehicle driving experience, and into its self-driving technology.

It's far too early to see if Rivian's AI bets will pay off. But we got early social validation last month, when Uber Technologies agreed to invest up to $1.25 billion in Rivian stock in exchange for up to 50,000 Rivian R2s. This deal not only generates serious revenue potential for Rivian's new model launch, but it also showcases Rivian's technology-first approach given the R2s are intended to support Uber's own robotaxi division.

Some analysts believe Tesla's AI investments could generate more than $1 trillion in value for Tesla stock. Rivian doesn't have as much capital to spend and will probably be an industry supplier to the robotaxi market versus a direct competitor. But with exposure to both rising EV sales and autonomous vehicles, Rivian has multiple ways to unlock 1,000% potential upside for patient shareholders.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.