Technology

Tesla turns Model Y and China success into its first ever annual profit

Tesla turns Model Y and China success into its first ever annual profit
Photo by Sean O’Kane / The Verge

Tesla’s record sales in 2020 helped the Silicon Valley company turn its first annual profit, according to financial figures released Wednesday, though not by much. Aided by a fourth quarter that brought in $270 million in profit on $10.7 billion of revenue, Tesla finished 2020 with a $721 million in profit on $31.5 billion in total revenue.

To help get over the line, Tesla booked $401 million in regulatory credit sales in the fourth quarter of 2020. The company generates this money by selling these credits to automakers that make fewer clean vehicles than are required by the US government and the European Union. The credit sales have come in handy the past year and a half, as they’ve generated hundreds of millions of dollars per quarter…

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