Thank you.

Hey everybody Rob Maower here and today we are of course talking about Tesla's

Q4 earnings report. In the after-hour session today the market has reacted strongly

positively to the report up almost 12% to $648.50 cents. So we're going to go through

all the details here but first things, this report to me is about Tesla demonstrating the sustainability of its business.

They posted beats on every line that we looked at. Revenue by about 6%, earnings per share

by about 30% between Gap and non-Gap, both beats,

and especially so on free cash flow,

at a billion dollars for the quarter more than double what Wall Street consensus

estimates were. Tesla is now free cash flow positive for the year. They are

profitable for the year on a non-gap basis, so not quite there yet on a gap basis.

We'll talk a little bit more about that, but on a non-gap basis profitable for the year,

they carry the expectation of profitability going forward with the exception of some quarters where they may have

significant production ramp-ups and they're ahead of schedule on two major projects with the model

Y and with the model 3 from Gigafactory Shanghai.

Tesla is executing and they are proving the sustainability of their business and that is why Wall Street

continues to react so positively to Tesla News.

That being said I am actually a bit surprised at how positive the reaction has been.

The results were relatively in line with bullish expectations, I think.

Whereas a quarterlight Q3, for example, completely blew away even the most bullish of forecasts.

And maybe it's semantics, but to me that makes this look more like a validation move than

really a huge surprise type of move.

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