How To Invest in Electric Vehicle Startups Before They Hit the Stock Market

Anyone who invested in Tesla Inc in the past few years and held is doing incredibly well. Tesla is seemingly unstoppable as CEO Elon Musk continues to grow in prominence and amasses a loyal following of people who believe in his vision. This has caused a massive rise in not only Tesla stock but basically anything he touches.

But Tesla still launched its initial public offering (IPO) at a multibillion-dollar valuation. This matters because if you held Tesla as it went from a $10 million valuation to a $1 billion valuation, you would be sitting on the same gains as if you bought at a $10 billion valuation and held it to a $1 trillion valuation. The number of companies that hit that trillion-dollar mark is few and far between, and it often doesn’t last long. 

This makes startups a lucrative portfolio diversification option. While investing in startups is risky, getting one right could make your entire portfolio. That’s why startups like StartEngine are making it possible for anyone to invest in something like electric vehicle (EV) startups. 

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StartEngine is unique because, unlike most startups, it is funded entirely by retail investors, and it’s raising funds so anyone can invest. The StartEngine platform offers opportunities to invest in hundreds of startups in industries ranging from electric vehicles to gaming marketplaces.

As EV startups continue to IPO and grow to billions, many people are likely wondering why they only get the chance to invest when most of the gains are gone. Rivian Automotive Inc, for example, launched its IPO near the $100 billion valuation mark but has since declined consistently. Anyone who actually likes the company can’t realistically invest without having to watch their portfolio continue to drop for years before it eventually levels out. But if you invested in Rivian when it was raising funds as a startup, even after a 75% drop you’d be sitting on tens of thousands of percent in gains. 

See more on startup investing from Benzinga.

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