Over the last five years, Telsa (NASDAQ: TSLA) has been on a tear. Shares in the electric vehicle (EV) giant have grown by a jaw-dropping 1,263%, dwarfing the S 500's return of just 54% over the same period. While the automaker faces near-term challenges from rising competition and an industry price war, its future might be even brighter than its past. Let's dig deeper into what the next five years could look like. 

Competition in the EV industry is rising as start-ups compete with established automotive brands to capitalize on the fast-growing opportunity. For Tesla, this has led to price wars and margin pressures. In the second quarter, the company's operating margin fell from 14.6% to 9.6% as management slashed prices across its vehicle lineup.

In the near term, this is a headwind for Tesla's stock because lower margins can mean lower profits, even if revenue keeps growing. But long-term investors should remember the big picture. 

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Source Fool.com