Tesla’s Margins Face Headwinds

In this episode of Motley Fool Money, Jon Quast and Matt Frankel discuss the noise around calendar-based investment decisions, such as tax loss harvesting, the Santa Claus rally, and the January barometer, cautioning against relying solely on these seasonal trends. They emphasize the importance of long-term investing in high-quality businesses. They then analyze Tesla's recent earnings, noting revenue growth but declining profit margins due to increased R&D spending and reduced regulatory credit revenue. Finally, they each pick a stock that was recently dropped from the S&P 500—Etsy and Enphase Energy—as potential outperformers over the next five years.