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Elon Musk. Photo: Xinhua News Agency / Contributor/Getty Images

Tesla earned $105 million in net profit in the fourth quarter, ending the year on a positive note and declaring 2019 a turning point for the volatile electric car company.

Details: Record 2019 deliveries helped drive revenues up 19% over the prior quarter, but profit margins fell because Tesla sold more of the lower-priced Model 3. Shares jumped 7% in after-hours trading on Wednesday to $621.89.

Why it matters: The results reflect a string of positive news at Tesla, including the recent launch of its Chinese factory.

What to watch: Tesla said it has started to ramp production of its next vehicle, the Model Y compact SUV, this month.

Here are some highlights of a Tesla investor call with CEO Elon Musk's and CFO Zach Kirkhorn:

  • Tesla's annualized production rate at its Fremont, California, factory was just over 415,000 units in the fourth quarter, about the same as the 2006 peak under GM and Toyota ownership. And it expects to "significantly increase" production with the launch of Model Y, starting this month.
  • Demand for Tesla's Cybertruck pickup is "far more than we could reasonably make in the span of three or four years."
  • Battery cell production capacity is the biggest potential bottleneck to growth — which is why the company is not accelerating Tesla semi-truck production beyond limited numbers, for example, Musk said. Increasing that capacity is the top priority, he said.
  • Operating expenses will be higher as Tesla invests for growth, but revenue will grow faster in 2020.
  • Tesla is closely watching the potential impact of the coronavirus outbreak in China. It currently expects delayed China production of a week to one-and-a-half weeks, which could slightly impact first-quarter profit.
  • They are closely monitoring the potential for supply chain impact from the virus. "So far, there's nothing material, but it's important to note that this is an evolving story," said Kirkhorn.
  • "We're spending money as fast as we can spend it," and access to capital is not holding Tesla back, Musk said.

Go deeper:

Go deeper

Biden says he'll make Supreme Court pick by end of February

President Biden speaks on the retirement of Supreme Court Justice Stephen Breyer in the Roosevelt Room of the White House. Photo: Yuri Gripas/Abaca/Bloomberg via Getty Images

President Biden on Thursday said he will announce the nominee for Supreme Court Justice Stephen Breyer's replacement by the end of February.

Driving the news: Biden also affirmed that he will nominate a Black woman to replace Breyer, saying "it's long overdue."

Stephen Breyer formally announces retirement from Supreme Court

Photo: Andrew Harnik/AP

Justice Stephen Breyer on Thursday sent a letter to President Biden formally announcing his retirement from the Supreme Court.

State of play: Breyer said his retirement will take effect when the court "rises for the summer recess (typically late June or early July) assuming that by then my successor has been nominated and confirmed."

COVID created an epic U.S. trade gap

Chart: Axios Visuals. Data: Census Bureau/Bureau of Economic Analysis

The details of the blockbuster fourth quarter GDP report released Thursday morning tell a vivid story of how the underpinnings of the world economy have been reshaped by the pandemic.

One example: In the arithmetic around U.S. economic output, trade acted as a more severe drag last year than it has in a generation.