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Motley Fool Hidden Gems Investing

Tesla Revs Up, Amazon Invests In Healthcare

Motley Fool Hidden Gems Investing

The Motley Fool

Business, Investing

4.33.1K Ratings

🗓️ 21 July 2022

⏱️ 25 minutes

🧾️ Download transcript

Summary

Tesla's profits surprise Wall Street, and Amazon buys 1Life Healthcare for $3.9 billion. (0:22) Bill Mann discusses: - Tesla's margins being compressed and STILL being the envy of rival automakers - How Tesla is (and isn't) comparable to Netflix - Amazon using "pocket change" to make its 3rd-largest acquisition (11:40) Jason Hall and Matt Frankel engage in a "Bull vs. Bear" debate over Lemonade, and both wish the AI-drive insurance company would hurry up and close its acquisition of micro-cap auto insurance company Metromile. Stocks mentioned: TSLA, F, NFLX AMZN, ONEM, LMND, MILE Host: Chris Hill Guests: Bill Mann, Jason Hall, Matt Frankel Producer: Ricky Mulvey Engineers: Dan Boyd, Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Tesla's surprise is Wall Street and Amazon makes another investment in healthcare.

0:10.0

Motley Fool Money starts now.

0:12.0

I'm Chris Hill joining me today, Motley Fool's Senior Analyst Bill Mann.

0:24.6

Thanks for being here.

0:25.6

Hey Chris, what's happening?

0:28.0

We got earnings season.

0:29.0

That's what's happening.

0:30.0

And we're going to start with Tesla.

0:31.8

It feels like we just had earnings season no more than three months ago, but we're back.

0:36.2

I know, isn't it great?

0:38.6

Tesla's second quarter profits were higher than expected, but margins are getting compressed,

0:46.1

which really shouldn't surprise anyone given the cost of materials going higher and supply

0:51.0

chain conditions continuing to be, let's call it, less than ideal.

0:57.0

Yeah, given the circumstances, Tesla's quarter was great.

1:03.0

But yes, you went right to the spot that the people who would suggest that Tesla is not

1:09.6

as great of a company as I believe it to be.

1:14.6

Their margins came down from for production, which is an important distinction for Tesla,

1:21.0

because they also have environmental credits from 30% to 26%.

1:26.9

Which is, in fact, it is a reduction.

1:31.1

It is higher than nearly any other car company.

1:34.2

Volkswagen, for example, which is a really fantastically run company.

1:38.6

Their margins range from 16 to 18%.

...

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