From Yahoo Finance: 2025-05-31 18:05:00

Tesla (NASDAQ: TSLA) stock has seen significant fluctuations in 2025, ranging from $220 to $430. Despite debate over its valuation, the company’s growth potential remains strong. There are two compelling reasons to consider purchasing more shares before its upcoming earnings call in late July.

Investing in electric car stocks has historically been challenging, with many EV makers failing due to financial constraints. The time and capital required to bring an electric vehicle to market are often underestimated, with companies like Rivian and Lucid Motors taking about a decade from inception to production.

As the largest pure-play EV company in North America, Tesla’s market cap exceeds $1 trillion, dwarfing competitors like Rivian and Lucid Group. With less than 10% of vehicles on U.S. roads being electric, there is immense growth potential for EV companies. Tesla’s financial strength allows for aggressive investment in new models and technologies.

Tesla’s future vision includes a robotaxi service, which investor Cathie Wood believes could lead to a 1,000% increase in stock price. While skepticism exists about the timeline and impact, Tesla’s resources position it well to develop this service over time, potentially contributing significantly to its revenue.

Analysts foresee Tesla’s robotaxi business generating $1.7 trillion by 2040, making its current $1 trillion market cap appear undervalued. Investors considering Tesla stock should focus on its long-term growth potential in both EV sales and the emerging robotaxi business, looking beyond short-term fluctuations.

The Motley Fool offers insights on investing in companies poised for growth, highlighting past successes like Nvidia, Apple, and Netflix. By joining Stock Advisor, investors gain access to “Double Down” alerts for promising companies, providing valuable opportunities for long-term investment growth.

*Stock Advisor returns as of May 19, 2025. Ryan Vanzo has no position in mentioned stocks. The Motley Fool recommends and holds positions in Tesla. The article “Prediction: Tesla Stock Is a Buy Before July 23” provides valuable insights for potential investors.



Read more at Yahoo Finance: Tesla Stock Is a Buy Before July 23