There are already a number of posts written, including one by yours truly, about the results for last quarter as they were reported after the close of the market yesterday. Therefore, the idea of putting together another article did not make a lot of sense.
However, as I thought about it, this is a prime example of what I write about all the time.
Technology is something that most do not immerse themselves in. They do not follow it closely, thus are not privy to how the process works. Most people only wake up after the fact when the paradigm shift already took place.
With Tesla, we have the benefit of watching things happen in real time.
Over the last few months, I tried to emphasize how important it is to understand technology. This is affecting everything. We all make choices about career, investing, and purchases. However, to undergo them without considering the technological implications could have catastrophic results.
"First they ignore you, then they laugh at you, then they fight you, then you win”
There is debate as to who said this so I will not place an attribute. I will saw many proclaim these to be the words of Ghandi.
Whoever said it, it really does sum up what is taking place with Tesla.
@rollandthomas just wrote an excellent article about Tesla and the different opinion Wall Street has today compared to a little more than a year ago.
As recently as 2018, the majority were concerned whether Tesla would make it or not. Bankruptcy was a legitimate option according to the masses. Only the most diehard Tesla "fanboys" were still optimistic about the company. Elon Musk's dismissive behavior did not help calm Wall Street either.
Read the article to get a refresher where the company was at that time.
https://steemleo.com/steemleo/@rollandthomas/this-is-why-you-can-t-bt-against-elon
As we can see, the company is now sitting on $6.3 billion after generating over $1 billion in free cash flow in the 4th quarter. The Model Y is in production which could affect the first quarter numbers negatively yet is a major accomplishment that will help for the year. China is up and running although the pandemic there is causing a delay in things.
Nevertheless, Tesla certainly looks like a company that turned the corner. Even their solar and energy divisions showed growth.
I followed this company for many years since they were involved in the tech that I try to stay abreast of. For this reason, I could sense where this was going before the masses caught on (too bad I didn't have the money to invest what I wanted). Personal financial mishaps aside. it appears that many are starting to recognize what this company was doing.
This is why I feel it is Exhibit A when it comes to showing what disruption looks like. Tesla is not being laughed at in board rooms of the major automakers. That I can assure you. A half decade ago, Tesla was being dismissed as a fad. Now, the major automakers are trying to play catch up. Some are beginning to question whether they can.
This is a basic exponential growth chart.
Source
Here are Tesla's vehicle deliveries and revenue charts courtesy of hyperchart.co. Notice any similarities?
By the way, the guidance for 2020 was to comfortably surpass 500,000 vehicles, which only adds to the trend on the first chart.
Another thing I wanted to point out is there is the underlying exponential growth chart forming within the second chart. Look at the non-red areas of the chart. See how they are growing, albeit it a fairly consistent pace. Once again, solar, services, and energy are flying under the radar. Most view Tesla as an automobile manufacturer because that is where most of the revenue comes from.
However, give it another few years and I think you will see the lower part of the chart see exponential growth too. This will form another pattern that multiplies the impact on everything else.
This truly is the epitome of disruption. It is starting to take place in many industries and most are missing it. The Tesla story is now on the front page along with Amazon and the retail apocalypse. There are, however, a number of other industries that are in the early stages, the one most people miss.
Be very mindful of disruption. For those involved in cryptocurrency, just take a look at some of the charts that people put together with that. You will see a similar story starting to be told.
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Posted via Steemleo