These two stocks could be going places.
It's not often you find stocks that have $1 trillion in upside potential. But the two stocks we'll look at today fit the bill. One of the companies, an undervalued electric vehicle (EV) stock, has a clear path toward adding $1 trillion to its market cap. The other company has already achieved this feat once, but there's reason to believe it can do it again.
It's very difficult for a company to create $1 trillion in value. But that's exactly what Tesla (NASDAQ: TSLA) has already done. And there's growing speculation that it could soon repeat this impressive feat.
Will AI create the world's first trillionaire? Our team just released a report on a little-known company, called an "Indispensable Monopoly," providing the critical technology Nvidia and Intel both need.
Before we get into how Tesla can add another $1 trillion to its market cap, it's critical to understand how Tesla achieved its $1 trillion valuation in the first place. The company's current valuation factors in many future growth catalysts. But for getting to this point, Tesla can thank its launch of the Model Y. "Tesla's Model Y has been one of the best-selling cars in the world for several years straight, and it accounts for a majority of Tesla's auto sales," I recently concluded. "In many ways, the Model Y paved the way for Tesla to become a $1 trillion business."
Tesla's existing scale -- which it achieved largely through massive demand for its Model Y crossover -- can now be used to pursue other opportunities. Earlier this year, Tesla announced that it would be discontinuing two iconic models: the Model S and Model X. Replacing those models will be Tesla's Cybercab, a vehicle with no pedals and no steering wheel. Mass production could begin as early as this year.
The production of Cybercabs clears the way for what some experts believe will be a $10 trillion global opportunity: robotaxis. Dan Ives, an analyst at Wedbush, thinks this opportunity alone could add $1 trillion to Tesla's market cap. If that's true, Tesla stock looks like a buy after falling 10% so far this year.
Tesla already proved that competing in the EV industry can create a $1 trillion business. And in many ways, it looks as if EV competitor Rivian (NASDAQ: RIVN) is about to repeat Tesla's recipe for success.
As mentioned, Tesla is able to target huge market opportunities like robotaxis because it has already achieved mass scale in its production capabilities. That, combined with the vision of Elon Musk, arguably makes Tesla one of the more unparalleled companies on the planet today.