2 Stocks to Buy This Week With $1 Trillion Upside Potential

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.

1. This company has already proved it can create $1 trillion in value

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.

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.

Image source: Rivian.

2. Rivian could soon replicate Tesla's $1 trillion miracle

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.

Rivian doesn't currently have mass scale. Its two existing models, the R1S and R1T, are priced at a premium and only produced in small volumes relative to Tesla's leading models. But in the coming months, deliveries should begin for the company's first vehicle priced for the masses: Rivian's R2 SUV. This model could ultimately prove to be the company's inflection point for mass growth, similar to what the Model Y did for Tesla.

Rivian isn't lacking additional growth catalysts, either. Management recently held its first "AI Day," outlining a large step up in artificial intelligence (AI) investments to reach full driving autonomy, a step that would allow it to compete directly with Tesla in the robotaxi market.

Other companies are already buying into this vision. Last month, Uber Technologies committed to invest up to $1.25 billion in Rivian shares in exchange for the right to purchase up to 50,000 R2 SUVs, vehicles that will be used to power Uber's own robotaxi division.

Rivian's current market cap hovers at just $20 billion. But by replicating Tesla's playbook for growth, it's not difficult to see the company surpassing a $1 trillion valuation many years down the road.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.