Investors Eye Tesla and Rocket Lab Amid Volatile Market

Growth stocks like Tesla and Rocket Lab appear alluring as their prices drop amid market volatility, providing opportunities for investors willing to take risks. This surge in interest is due to upcoming developments that might enhance their stock appeal.

Date: 17-05-2025

AI Rating: 7

**Volatility in the Market**
Market volatility has created a challenging environment for investors in 2025. Amidst this, Tesla and Rocket Lab emerge as notable investment opportunities, particularly after experiencing price declines of 15% and 7%, respectively. Investors seeking growth stocks are likely to consider these companies due to their considerable upside potential.

**Tesla's Position**
Tesla's significant decline in stock prices reflects broader concerns regarding its sales performance and management decisions. Despite these concerns, several positive catalysts surface that could lead to future growth: the transition to the Juniper model production, plans for cost-effective models, and the potential launch of fully-autonomous robotaxis could rejuvenate investor interest. Critically, the company has a robust growth pathway planned for 2025 and beyond, especially with expected recurring revenues from robotaxis.

From a financial perspective, while the report does not specify EPS, revenue, or margins, Tesla's future promises substantial long-term revenue generation if the robotaxi launch meets expectations. Given the uncertainty, Tesla's stock is a potential buy for those comfortable with risk.

**Rocket Lab's Growth Trajectory**
On the other hand, Rocket Lab has showcased impressive revenue growth of 32% year over year, amounting to $122.6 million in Q1 2025. The company has a strong backlog of $1.067 billion, indicating a solid demand for its services. Investors seem concerned about its ability to launch the Neutron rocket as anticipated, but the continued confidence of the management could assuage these worries and ignite interest from potential investors.

Although Rocket Lab is currently unprofitable, the reported revenue growth and backlog suggest strong demand relative to its market opportunity. If the company retrofits its operations efficiently and meets its projections of launching the Neutron rocket, it could experience remarkable growth in market valuation, especially when bidding for U.S. Space Force contracts.

In summary, both Tesla and Rocket Lab exhibit attractive profiles for growth investors, especially with their stock prices at lower valuations due to recent downturns. Investors looking for stocks with potential catalysts for recovery in the coming months may find these two names aligned with their investment strategy.

Stocks: TSLA RKLB