Can Tesla Stock Help Make You a Millionaire?

Ryan Vanzo, The Motley Fool

Sun, Apr 27, 2025, 10:50 AM 5 min read

It's been a tough year for Tesla (NASDAQ: TSLA), shares of which are down by about 30% year to date and more than 40% below the peak they reached in December. Yet on paper, the stock still doesn't look like a screaming buy. It remains expensive on a price-to-sales basis, especially compared to other electric car stocks like Lucid Group and Rivian. Plus, analysts' expectations for its growth this year are uninspiring.

But there's one factor that could catch the market by surprise this year, adding huge growth to its sales in 2026 and beyond. Could buying Tesla stock after its recent slump help your portfolio reach the $1 million mark? The answer is yes, but there's a catch.

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A decade ago, Tesla's annual sales were under $5 billion. Today, they're above $95 billion. Some of that massive growth came from rising demand for its top-end models, the Model S and Model X. In 2015, the Model S had been on sale for several years, but deliveries of the Model X only began in September of that year. Most of the revenue growth for Tesla over the past decade, however, came from its two mass-market models: the Model Y and Model 3. Both of these vehicles debuted with sticker prices under $50,000 -- a level that puts them within reach of tens of millions of potential buyers.

This year, analysts are, on average, projecting that Tesla's sales will grow by just 8.6%. This is in part due to its stagnant lineup of vehicles. The Model 3 and Model Y were introduced in 2016 and 2019, respectively. The Cybertruck, meanwhile, began production in 2023, but it can cost more than $100,000 depending on options. Tesla hasn't released a new affordable vehicle in nearly a half-decade.

If Tesla debuts another affordable model, its sales growth could experience a strong resurgence -- and according to a recent report, this catalyst could arrive as soon as 2026, with a base price that might shock investors.

Elon Musk has always been clear about his growth strategy for Tesla. His "master plan" for the company was to first introduce luxury electric vehicles, then use the profits from those sales to develop and launch more affordable EVs. The company would then use the proceeds from these models to develop even more affordable vehicles.

Way back in 2018, Musk told a reporter that "a $25,000 car, that's something we can do." According to recent revelations, that $25,000 Tesla could finally be just around the corner, but there's a catch: It won't be able to be piloted by a human driver. Instead, it will be the long-awaited Cybercab: a two-door, two-seat, fully autonomous vehicle.