WILL TODAY BE A REPEAT PERFORMANCE? JOINING US NOW IS TESLA SHAREHOLDER, BRYN TALKINGTON, MANAGING PARTNER AT REQUISITE CAPITAL MANAGEMENT AND A CNBC CONTRIBUTOR. IT IS GOOD TO SEE YOU. GIVE ME AN IDEA OF WHAT YOUR PSYCHE IS LIKE HERE, GOING INTO THIS REPORT, GIVEN THE HISTORY AND THE MOST RECENT DECLINES IN SHARES. >> WELL, I MEAN, I THINK THIS IS GOING TO BE THE MOST -- THIS IS THE MOST ANTICIPATED EARNINGS CALL IN AS LONG AS I CAN REMEMBER. SO, JUST THIS TIME LAST YEAR, THEY DID $.85 FOR THIS QUARTER. NOW, THE STREET ESTIMATES ARE AT $.50. SO, THIS IS NOT GOOD. THEY NEED TO COME OUT, OR ELI NEEDS TO COME OUT -- THEY COULD TAKE A PAGE FROM MARK ZUCKERBERG AND STOP TALKING ABOUT RUBBER TAXIS LIKE HE WAS TALKING ABOUT THE META-VERSE. THERE ARE DOING LAYOFFS, WHICH IS SMART. THEY NEED TO GET FIT, THEY NEED TO COME UP WITH A PLAN OF, WE NEED TO GET EV SALES IN LINE, FULL SELF DRIVING SUBSCRIPTION, LET'S HEAR ABOUT THAT, LET'S HEAR ABOUT OPTIMIST, LET'S HEAR ABOUT THE OTHER THINGS THEY ARE DOING, LET'S NOT TALK ABOUT ROBO TAXIS. IF THAT IS PART OF THE NARRATIVES, THEN THE STOCKS ARE GOING TO GO DOWN, BUT I THINK THE LINE, HE DIDN'T GO TO INDIA, I THINK HE IS GOING TO TAKE THIS SERIOUSLY, AND I WOULDN'T WANT TO BE SHORT GOING INTO THIS CALL BECAUSE THERE IS SO MUCH BAD NEWS IN THERE, SCOTT. >> EVEN IF HE PUTS IT IN YOUR WORDS "SERIOUSLY," HOW WOULD YOU DEAL WITH, RECONCILE, CONTINUED PRICE CUT WHEN THE STREET THINGS THEY ARE DONE LOSING MARKET SHARE IN CHINA? YOU MENTIONED, GETTING LEANER. YOU KNOW, THE WHOLE STRATEGY SHIFT, IF YOU WILL, THIS ROBOTAXI IDEA, IF YOU WILL, WHICH YOU DON'T WANT TO HEAR ANYMORE ABOUT, WHAT YOU MIGHT, AND I'M CURIOUS ABOUT IF YOU DO AND A GENERAL EV SLOWDOWN. IF SO, MAYBE THE GOALPOSTS HAD JUST MOVED IN WAYS THAT YOU AND OTHER BULLISH SHAREHOLDERS DIDN'T EXPECT THEM TO. >> SURE, THE EV SHOWDOWN -- SLOWDOWN IN THE U.S. IS IMPORTANT FOR THE STORY, BUT REALLY, IT IS CHINA. I THINK THAT IS THE BIGGEST RISK IN THE NAME. AS I TOLD YOU BEFORE, I SOLD CALLS AGAINST IT, WHICH I LIKE TO DO, WHICH IS A GOOD THING TO DO FOR THESE TYPES OF NAMES. BUT FOR ME, WITH CHINA, THE MODEL, FIRST OF ALL, IS THE NUMBER ONE SELLING EV CAR IN THE WORLD AND CHINA'S GROWTH IS STILL GROWING. IF THEY CAN CONTINUE TO BE WITH VIEW I.D., CHINA IS A VERY BIG MARKET, BUT THEY HAVE TO HAVE A PLAN THERE. SO TO ME, THAT IS MY CONCERN TO THE NAME LONGER AND MIDTERM, IS WHAT HAPPENS IN CHINA. I'M LESS CONCERNED IN THE U.S. BECAUSE THERE IS NOT THAT BIG OF A EV MARKET TO BEGIN WITH. >> ISN'T THE WRITING ON THE WALL TOTAL SO SPEAK, IN CHINA, IF THEY ARE NOT MAKING MUCH OF A DENT IN PRICE COMES? AND DO YOU HAVE CONFIDENCE THINGS WILL IMPROVE THERE? >> I AM CAUTIOUSLY OPTIMISTIC. YOU CAN LOSE MARKET SHARE AS LONG AS THE BUYER SHARE IS GROWING, RIGHT? SO, YOU CAN HAVE SMALLER PIECES OF A BIGGER PIE. CHINA IS ALL IN ON THAT. I ALSO THINK IT IS ONLY 6% OF REVENUES BUT YEAR-OVER-YEAR, IT GREW 50%. ENERGY STORAGE LONG-TERM WILL NOT DO ANYTHING FOR THE STOCK TODAY OR TOMORROW, BUT THAT CONTINUES TO BE A NARRATIVE UNDERNEATH KIND OF LIKE APPLE IN THE EARLY DAYS. LET ME BE CLEAR. I THINK IT IS DICEY, IT WILL BE MURKY OVER THE NEXT FEW QUARTERS. MY POSITION GOT CALLED AWAY BECAUSE I DO SELL CALLS, BUT LONGER-TERM, I STILL WANT TO BE IN THIS NAME. UNLESS HE GOES ALL IN ON THE ROBOTAXI. IF THAT IS PART OF THE NARRATIVE, I AM OUT. TO ME, THAT IS LIKE FLYING CARS, IT IS NOT PRAGMATIC. AS I SAID IN THE BEGINNING, I WANT HIM TO CHANNEL THAT MARK ZUCKERBERG, WHEN HE DID THAT BIG PIVOT FROM FAITH BURCH TO -- FACEBOOK TO META. I THINK IT WILL BE A MUST LISTEN TO CALL, FOR SURE. >> YOU SOUND LIKE OUR FRIEND SEBASTIAN PAGE, LIKE A RELUCTANT BOWL, ALMOST LOOKING FOR REGIONS TO GET OUT IN ORDER TO STAY IN. >> NO, NO. >> LET ME ASK YOU THIS. GIVEN EVERYTHING THAT YOU SAID, WHAT STUCK WITH ME ESPECIALLY IS THE CHINA STORY, WHERE YOU TALKED ABOUT HAVING A SMALLER PIECE OF A BIGGER PIE. IF THAT, IN FACT, IS THE CASE, THEN WHY DOES TESLA DESERVE AS MUCH AS A PREMIUM EVALUATION THAT IT WAS GETTING BEFORE, IF ONE OF THE STORIES IN THE BIGGEST GROWTH MARKETS ON EARTH ISN'T WHAT IT WAS? >> WELL, IF YOU ARE A SMALLER PIECE OF A BIGGER PIE, YOU CAN HAVE MORE OF A STORY. I THINK I HAVE LOOKED AT THE CHINESE MARKET AND LOOKED AT WHAT HE HAS DONE THERE. AND TO ME, THEY LITERALLY COPIED HIM. SOME OF THESE CARS HAVE THE BLACK CREDIT CARD KEY, EXACTLY. SO, THAT IS A REAL, PRAGMATIC NARRATIVE THAT I HAVE TO THINK THROUGH. BUT, I STILL THINK THAT IS THE GROWTH ENGINE FOR TESLA, THE CARS IN CHINA AND WE ARE JUST GOING TO HAVE TO GET INTO THE NEXT TWO QUARTERS. LISTEN, I AM A PRAGMATIC INVESTOR. THAT IS WHERE IF YOU WERE TO GO -- IF HE WERE TO GO FULL ROBOTAXI, THE MARKET WOULDN'T LIKE THAT.
