Tesla(NASDAQ: TSLA) Stocks have been traveling wildly in 2025, with stocks ranging from $220 to $430 since the start of the year. Although many investors believe these stocks are now overvalued, the growth story of electric vehicle companies (EVs) remains convincing. In fact, there are two encouraging reasons to buy more stocks before the next earnings sale scheduled for late July.
Profitable investment in EV inventory has proven difficult over the past few decades. In the past decade alone, at least 30 electric vehicle manufacturers have been in trouble. The most common reason for these failures is not the lack of good ideas or viable products. Instead, most of them just run out of money before they can turn profitability into profitability.
The capital and time required to bring electric vehicles to the market is far greater than most consumers realize. Rivian and Wake up motorFor example, it took about a decade from the idea phase to the actual production and sale of its first model. Tesla was launched in 2003, but its first model, the Convertible Roadster, didn't attract customers until 2008 – a fairly fast development compared to its competitors. Still, the long delays that plagued its Seberak proved that even a mature company could be difficult to sell new models on time.
Currently, Tesla is by far the largest pure electric vehicle company in North America. Its market capitalization is about $1 trillion. By comparison, the total value of Rivian and Lucid Group is only $30 billion. Given that less than 10% of vehicles on U.S. roads are electric, the long-term growth of electric vehicle companies is significantly greater. Tesla has few competitors in having original financial capabilities not only to survive, but also to actively invest in new models and next-generation technologies. For example, it could raise $30 billion in new cash – about merge Total market cap for competitors Rivian and Lucid Group – dilute shareholders only 2.5%. This ability also gives debt holders more confidence, thus reducing Tesla's debt costs.
In fact, its massive capital advantage makes it possible to think big – far beyond any of its competitors can afford. This directly leads to another reason why investors should now consider buying stocks.
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If you ask the well-known technology investor Cathie Wood, what is Tesla’s future, she will undoubtedly answer: “Robotaxis.”
The electric car maker has unveiled the upcoming Robotaxi vehicle Cybercab and announced in June that it plans to start operating its ride service in Austin, Texas – although it will not use a network library to start, it comes with 10 model YS but with its latest version of its full self-driving software, its “fsd dubbud Buught” fsd unsupuperver unsupuppervised''''''. Wood believes Tesla's Robotaxi service will soon “spread” and achieve shackles in the U.S. ride market. She believes the service could boost Tesla's stock price by nearly 1,000%, and over time the company's revenue accounts for more than 90% of the company.
I'm skeptical of Wood's optimistic schedule and forecast. Tesla is currently facing a decline in sales from its core EV business, and if its expected timeline shows any signs, the Robotaxi service will take years to build and scale, not what the company wants investors to believe. Despite this, the upward potential is still obvious. Given Tesla's capital advantage, it will have the time and money necessary to achieve this vision even if it takes most of a decade to fully realize.
Why buy Tesla stock before the next earnings report? Because you believe in the growth in electric vehicle sales and the long-term vision of Tesla's new Robotaxi business. While the path forward will be difficult, some analysts believe that Tesla's Robotaxi business could bring in $1.7 trillion by 2040. If you think this can achieve that, Tesla's current $1 trillion market cap looks like a relative bargaining and there's no reason to wait for a job establishment. Note that in this case, Tesla should be holding for up to ten years, rather than a short-term bet on the company's near-term prospects.
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Ryan Vanzo has no position in any of the stocks mentioned. Motley Fool has a place and recommends Tesla. Motley Fool has a disclosure policy.
Prediction: Tesla stock is a purchase before July 23
