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Russian (RU) Scott Levine and Lee Samaha, The Motley Fool
Sat, May 17, 2025, 6:43 AM 5 min read
In This Article:
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Investors may be overlooking a host of positive catalysts at Tesla.
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Success with the Neutron rocket can be a boon for Rocket Lab.
Volatility has run rampant in the market since the start of the year, and while some investors may be seeking shelter in more conservative investments, others have other things on their minds. Those with long investing horizons -- and the stomach for withstanding volatility -- have been on the prowl for opportunities to buy great growth stocks at bargain-bin prices.
Two Fool.com contributors, for example, recognize that electric car (EV) specialist Tesla (NASDAQ: TSLA) and launch services provider Rocket Lab (NASDAQ: RKLB) are two especially smart additions to investors' portfolios right now after their respective stock price declines of 15% and 7% over the past year.
Lee Samaha (Tesla): Tesla stock is down 15% this year, as its sales have disappointed relative to expectations, and investors are concerned with potential damage to the brand associated with CEO Elon Musk's work with the Department of Government Efficiency (DOGE).
The electric vehicle company's stock price decline reflects a lot of the negative news being reported. That said, Tesla has several near-term positive catalysts that could lead investors to reassess the long-term case for buying the stock. They include:
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Musk has already stepped back from his work at DOGE.
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Tesla has successfully transitioned Model Y production to the new Juniper model, which should increase deliveries of the world's best-selling car.
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Tesla plans to release lower-cost models this year, and the company continues to lower its cost per vehicle as it improves its production processes.
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Management plans to mass-produce the robotaxi concept car, Cybercab, in 2026.
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Tesla plans to launch a robotaxi with unsupervised autonomy on a Model Y in Austin in June.
The robotaxi launch could positively revise investors' expectations for the stock. If Tesla is successful with its robotaxi launch, it could lead to significant long-term revenue growth due to recurring revenue generated through every mile a robotaxi drives, whether it's a Cybercab or a repurposed Tesla model.
The flip side of the argument is that Tesla has disappointed investors before by failing to hit its aims, not least with robotaxis and full-service driving. Still, it's certainly not alone in doing that. Meanwhile, being late on robotaxis may turn out to be a net positive, as the success of Waymo has built up the public's acceptance of robotaxis, a market that Tesla intends to break into very soon.
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