(NASDAQ: TSLA) has been a terrific long-term investment. Since the company went public in 2010, the shares have gained more than 10,000%. This meteoric rise helped place the company in the Magnificent Seven, a list of superstars that also includes the likes of Alphabet and Meta Platforms.

While most of the Magnificent Seven stocks have performed exceptionally well during the past three years, Tesla stock has actually lost nearly a third of its value. What went wrong with Tesla versus the rest of the Magnificent Seven? It's not that Tesla is a broken company, but that its business model depends on a different set of economics. Making cars is capital intensive, and over the long term, low margin. Tech companies like Alphabet and Meta, meanwhile, are asset light. These businesses generate high profit margins and can expand much more rapidly than the manufacturer of a physical product.

Right now, there's a company that doesn't get the attention it deserves even though it has a lot in common with the rest of the Magnificent Seven. Its market cap recently surpassed Tesla's, and I wouldn't be surprised to see it take Tesla's place in the Magnificent Seven as early as this year.

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Source Fool.com