Got $5,000? Here's the 1 "Magnificent Seven" Stock I'd Buy While It's 25% Off Its Highs
Key Points
Tesla is an electric vehicle company, but its future is much more.
Analysts expect Q1 revenue to be up 17% from last year.
Tesla has high hopes in its full self-driving technology and its Optimus robots.
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I think this is an interesting time to be in the stock market because the landscape has changed dramatically over the last year. The rapid run of tech stocks has come to an end, at least for now, and investors are cycling their money to sectors like consumer staples and energy stocks. As the market comes under pressure, value stocks are better buys, while growth stocks have lost some luster.
However, I've always had a little contrarian streak -- I like investing in stocks when there's an opportunity to get them at a discount, especially if the company has a huge opportunity ahead that I think is underappreciated.
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That's why I'm really interested in Tesla (NASDAQ: TSLA) stock today. Elon Musk's brainchild is down 25% from all-time highs, including a drop of 18% so far in 2026.
But I'm not counting Tesla out at all. Musk is in the process of turning the electric vehicle company into arguably the most influential robotaxi provider. And its work with the Optimus robot, which he hopes to begin marketing to the public next year, has the potential to be a game-changer for Tesla.
If you've got $5,000 to invest, Tesla may be one of the biggest bargains in the "Magnificent Seven" right now. Let's take a closer look.
Image source: The Motley Fool.
What Tesla is today
Tesla made its mark as a maker of electric vehicles, and that's led the company to a market cap of more than $1 trillion. For all of 2025, Tesla delivered 1.63 million vehicles, a slight dip from 1.78 million in 2024.
The reduction wasn't really a surprise -- there's more competition in the EV space today, which cuts into Tesla's margins. The company (as well as other manufacturers) was also hurt by the expiration of a $7,500 federal tax credit on EV purchases last year.
Then there's the impact of Musk's political actions -- the National Bureau of Economic Research published a study indicating that voter dislike of Musk's involvement in U.S. and European politics cost Tesla as many as 1.26 million vehicle sales between October 2022 and April 2025.
However, Tesla still has a 54% share of the U.S. EV market, up from about 43% a year ago. First-quarter deliveries were 358,000 vehicles, up from 336,000 in Q1 2025. The company's earnings release is scheduled for April 22, but analysts are expecting revenue of $22.64 billion, which would be up 17% from a year ago.
Where Tesla wants to go
The secret sauce for Tesla stock comes in two major innovations that the company is working on. The first is the development of full self-driving technology, or FSD. While Tesla currently allows automated driving with a human monitor behind the wheel, the company hopes to perfect the technology to enable unsupervised FSD. The company is working on the next version of FSD technology, which Musk says "far exceeds human levels of safety." While he's made similar comments in the past, the reality is that once the software is complete and tested, it will need federal approval before it's OK for widespread use.
With hundreds of thousands of Teslas on the road, FSD will be a huge profit center for Tesla. The company charges its users $99 a month for the supervised FSD software, and says that price will increase as FSD capabilities improve. In short, Tesla is poised to instantly become a market leader in robotaxis.
The company's other innovation is its Optimus humanoid robot, which Tesla says will cost $20,000 to $30,000 each and will be available for purchase as early as next year. Musk says the Optimus, which is already at work doing repetitive tasks in Tesla factories, will be capable of daily household chores and be an in-house companion.
Both of these innovations would generate massive revenue -- which is why Tesla's board authorized a compensation package for Musk worth as much as $1 trillion if the company hits its goals. And it's why I think that Tesla, down 25% from its all-time highs, is worth a second look today.
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Patrick Sanders 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.
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