2 Stocks Down 15% and 7% to Buy Right Now

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.

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Tesla has significant upside potential, but it needs to deliver on its promise in 2025

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:

• Musk has already stepped back from his work at DOGE.
• Tesla has successfully transitioned Model Y production to the new Juniper model, which should increase deliveries of the world's best-selling car.
• 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.
• Management plans to mass-produce the robotaxi concept car, Cybercab, in 2026.
• 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.

Rocket Lab is on a trajectory to significantly grow its market opportunity

Scott Levine (Rocket Lab): After soaring 361% higher in 2024, shares of launch services provider Rocket Lab have come back down to Earth -- a little, at least.

Since the start of 2025, Rocket Lab stock has underperformed the market. While the S&P 500 (SNPINDEX: ^GSPC) has inched 0.3% higher (as of this writing), shares of Rocket Lab have descended more than 6%. Growth investors -- or those interested in space stocks -- on the prowl for compelling opportunities, consequently, have a great opportunity to pick up Rocket Lab stock during this pullback.

Much of the stock's decline this year can be traced to investors' concerns that the company won't meet its expectation to commence launches of its Neutron rocket in 2025 -- skepticism that was largely predicated on a critical report from Bleecker Street Research.

The company, however, maintains confidence that Neutron will blast off in 2025, reaffirming this expectation during its recent first-quarter 2025 earnings presentation. Already, the company is receiving strong interest from customers, and it expects to start bidding on U.S. Space Force contracts that have a total value of $5.6 billion once it starts launching the Neutron rocket.

Growing revenue 32% year over year to $122.6 million in Q1 2025, Rocket Lab has clearly demonstrated that demand is strong for its launch services, and that's not the only indication. Rocket Lab ended the first quarter with a backlog of $1.067 billion.

Since Rocket Lab is still unprofitable, traditional valuation metrics aren't helpful. But with the stock tumbling lower since the start of the year, forward-looking investors have the opportunity to take flight with this leading space stock at a lower price than when the year began.

Should you buy these stocks now?

Investing in innovative companies like Tesla and Rocket Lab is not for the faint of heart. When fear emerges in the market, it's often disruptive companies like these that suffer the most precipitous declines. Those who have the tolerance for risk and the resilience to shrug off volatility may enjoy ample rewards in the future.

Investors in this camp, therefore, would be smart to hitch a ride with Tesla and Rocket Lab stocks right now, despite their recent declines.

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Lee Samaha has no position in any of the stocks mentioned. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Rocket Lab USA. The Motley Fool has a disclosure policy.