Tesla reported $721 million in 2020 earnings, its first profitable year

Tesla Motors reported its first annual profit Wednesday, but shares fell after Elon Musk’s electric car company scored lower-than-expected fourth quarter earnings.

Tesla, a soaring stock for much of the last year, reported 2020 profits of $721 million, reflecting the company’s strong ramp-up in production and deliveries despite a hit from COVID-19. Tesla had reported a 2019 loss of $862 million.

Revenues for 2020 jumped 28 percent to $31.5 billion.

“This past year was transformative for Tesla,” the company said in its .

“Despite unforeseen global challenges, we outpaced many trends seen elsewhere in the industry as we significantly increased volumes, profitability and cash generation.”

Tesla said that 2020 was a “critical year” for the company but 2021 “will be even more important” as the company escalates output at its China factory and targets first production at