Key insights
- The article discusses Tesla's business model and upcoming earnings, questioning its reliance on a robust economy for growth. It also mentions potential competition in the diamond market due to a possible cartel between Russia and South Africa. The analysis suggests a bearish outlook for TSLA due to declining revenue growth and dependence on external economic factors.
A visionary was born in 1971, that today has rumors about his success being related to diamonds. Might just be because the De Beers family is from the same country as him.
Diamond mining in South Afrika peaked in 2006. By 2010 annual production fell to 88 million milligrams a 54% drop vs the prior year. Elon Musk became CEO of TSLA in 2008. After selling PayPal to eBay, Musk set his sights on the car company founded by Martin Eberhard and Marc Tarpenning in 2003. Tesla, Inc. was originally conceived as a pure electric vehicle (EV) company with a very specific strategy: start expensive, prove the tech works, and scale down.
The 1^(st) generation Tesla Roadster was their concept, on wheels. Without a doubt by acquiring Tesla in their Series A Funding of 2004, the son of the late Joshua N. Haldeman became their largest shareholder.
The EV company is set to deliver earnings results next Wednesday. Is the proving the tech business model still working? With revenue dropping 52.46% in 2024 and falling another 46.79% in 2025 all while top line is seceding record levels but not fluctuating lower. In growth stock fashion TSLA requires the tailwind of a robust, spending economy. Within nature when growth depends on shock and awe, you eventually run out of room. If it depends on improvement, that’s a plausible vision.