Tesla records $ 721,000 in profit in its first profit year

New York: Tesla Motors reported its first annual earnings on Wednesday, but shares tumbled after electric car company Elon Musk reported lower-than-expected earnings in the fourth quarter.

Tesla, a stock high for most of last year, reported a 2020 profit of $ 721 million, reflecting the company’s strong increase in production and delivery despite the Covid-19 hit. Tesla reported a 2019 loss of $ 862 million.

2020 revenue jumped 28% to $ 31.5 billion.

“Last year was a turnaround for Tesla,” the company said in its earnings report.

“Despite unexpected global challenges, we have crossed the many trends we are seeing elsewhere in the industry as we have significantly increased volumes, profitability and cash generation.”

Tesla said that 2020 has been a “critical year” for the company, but that 2021 will be “even more important” as the company ramps up production at its China plant and targets first production at new plants now being built in Germany and Texas.

In the fourth quarter, the company reported profits of $ 270 million, up 157% over the same period last year, as a result of a 46% increase in revenue to $ 10.7 billion.

That translated into a earnings of 80 cents a share, less than the $ 1.01 analysts had expected.

The company did not provide detailed sales or profit forecasts for 2021.

In terms of volume, “Over a multi-year horizon, we expect to achieve an average growth of 50% in auto deliveries,” Tesla said. “In some years we might grow faster, which we expect will be the case in 2021.”

The shares were down 4.5% to $ 824.90 in post-close trade.

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