Deepwater’s Gene Munster and Requisite’s Bryn Talkington, join 'Closing Bell' to discuss Tesla ahead of its earnings report, how Elon Musk is impacting the stock and more.

Gene Munster of Deepwater and Bryn Talkington of Requisite Capital recently provided insights on the current state of Tesla, particularly in regard to brand challenges and operational focus under Elon Musk's leadership. Both Munster and Talkington have financial stakes in Tesla, and they discussed the various factors affecting the company ahead of its earnings report. Key issues identified include industry competition, particularly in China, autonomous vehicle development, and Musk's influence on the company.

While Tesla continues to be perceived as a luxury brand with significant market presence, it faces increasing competition from other electric vehicle (EV) manufacturers such as Xpeng, Li Auto, and BYD. The dynamic in China is notably competitive as these companies vie for market share by offering a wide array of vehicle options. Talkington emphasized the importance of Tesla's guidance on its global strategy, particularly its plans in China, a crucial market for EV sales.

Munster expressed a contrarian view regarding the immediate implications of the company's earnings report, suggesting that Tesla has strategic plans extending to 2025 and beyond. He noted that while short-term challenges exist, such as brand damage and missed delivery estimates, the long-term outlook for Tesla remains promising. Munster highlighted Tesla's advancements in autonomous driving and artificial intelligence as areas where the company maintains an edge over competitors. Despite near-term financial pressures, Tesla's innovative approaches continue to position it as a leader in the EV sector.



Sizing up Tesla's brand damage

Gene Munster of Deepwater owns Tesla shares personally, so does CNBC contributor Bryn Talkington of Requisite Capital, with me both now as you see. Bryn, you first. There's a laundry list in front of us today of what is incredibly important. What's most? Tariffs, gross margins, brand damage, new model delays, autonomous, Musk? You pick. You said it right there. I mean, you captured it. I agree with Phil, and I hope Dan Ives is right that he says he's going to focus on Tesla. I think he can focus on 10 different things. We've all seen that. But understand, he does what he wants to do because he has these incredibly strong beliefs, whether you agree with him or not. And so I don't know if he would say he would be stepping away from Doge. I don't. I think that may. I agree with Phil. I don't I don't even remotely think that that's a high probability. I think it would be helpful for Tesla investors. But I think really what we want to understand is guidance is that from a car company or 80 percent of the revenue, 80 percent of the revenue comes from cars today. 20 percent is other is guidance. And also what's happening in China, because I've talked about this a lot. China is where the EV you have to sell cars in China. And there's so much competition. Tesla is still looked at as a luxury brand. But I kind of feels like when you look at all of the other Xpen, Lee, BYD, there's somewhat of a race to the bottom of just pushing out all of these cars. So I really want to hear about China. I think Tim Cook, Jensen and Elon probably have the best relation with the Chinese government. And so I think that's going to be incredibly important in terms of what type of guidance are we going to see in China versus the U.S. or Europe. So interesting, Jean. It's so much underscores as well the current environment that we find ourselves in, that when I present Bryn with a laundry list of issues, she starts with all roads lead to Elon. And then everything else follows after that. Is that to you the most important thing we need clarity on tonight? What, you know, Ives is called, you know, a code red situation and whatever other things that he said about Musk getting back to work, so to speak, at Tesla. I have a contrarian view, Scott, on how this all plays out. I think that tonight it really doesn't matter. And part of the reason why is that if we look back what the company said three months ago, CFO talked about 2025 being a pivotal year. Since then, deliveries have been a disappointment. The whist that you mentioned that automotive Phil mentioned that eleven and a half percent estimate the whisper number is more like nine or ten percent. People know 2025 is going to be a train wreck. And the question is, are they going to have a new vehicle that's going to be launched in 2026? And so I think this is a unique quarter where Tesla's got a lot of room to say a lot of negative things because there wasn't too much expectations about things getting better anytime soon. Estimates still need to be revised. And so from I think the conversation about Elon and I think psychologically it's important to investors agree that he probably doesn't say much about it. But at the end of the day, I think that people who own the stock today own it for 2026. I mentioned train wreck near term. I think this is a rocket ship long term. And so they're doing all the right things. But it's going to be costly in 2025. What gives you the confidence, though, that that they can turn this around? It remains unclear as to what level of brand damage has been done. Seems there's been some and how lasting it might be. So I'm in the view that this is not a car company. I think that the autonomy piece, understanding that's a great salesperson, but it resonates what they're doing. I think if you look at which companies are the most advanced when it comes to physical A.I., it's probably Tesla and Andrew. And so when I think about that question about cars and I think that there's just a higher order that's that's going on, they got to get the car business. They got to get through the brand damage. That's all going to happen. It may take six months. It may take a year, but they're going to get through it. And eventually customers are going to vote on the merits. Is this the right car for the right the right price? And I still think that Tesla stands above the competition when it comes to not only range and price, but also what the future car could be like around autonomy. And so that's when I talk about the rocket ship. I'm just a firm believer that physical A.I. will take longer, but be more impactful. And I think Tesla, no one's even close. Elon referred to it last quarter as you need a telescope to see the one who's in second place. And he's right.

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