Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa Bay news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Charlotte news in your inbox

Catch up on the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Expand chart
Data: FactSet; Chart: Axios Visuals

That sharp spike you see in Tesla's already-high stock price is what happened Wednesday when the electric automaker reported a $105 million fourth-quarter profit and offered a rosy take on what's ahead.

Why it matters: Tesla and CEO Elon Musk kick up lots of dust, but the bottom line is that the trajectory of the world's largest electric vehicle seller matters a lot for the tech's wider adoption — even as competitors ramp, up too.

Where it stands: Axios' Joann Muller has lots of good info about the earnings rollout in her full story, but here are some toplines...

  • Tesla expects to remain profitable going forward, with "possible temporary exceptions" around product launches and ramp-ups, it said in the earnings report.
  • 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.
  • Its upcoming Model Y compact SUV is ahead of schedule — the production ramp has begun and it plans to start deliveries by the end of this quarter, the company said.
  • Overall, Tesla said full year 2020 deliveries across its product lines will "comfortably exceed 500,000 units."

But, but, but: Battery cell production capacity is the biggest potential bottleneck to growth — as seen in Tesla's decision to not accelerate its semi-truck production beyond limited numbers, Musk said.

  • Increasing that capacity is the top priority, he said.

What they're saying: Tesla tends to lurch from good stretches to near-crises, so there are predictably divided views about how to assess the moment. A sampling:

  • Via MarketWatch, a Wedbush Securities analyst called the results "potentially 'game changing,'" in a note that says it could signal a "new era" for Tesla.
  • “They are not even remotely out of the woods,” Peter DeCaprio of the investment firm Crow Point Partners tells the Los Angeles Times.
  • "At $650, the after-market [stock] price is pretty much divorced from any reasonable underlying math," writes Bloomberg columnist Liam Denning.

Go deeper: Tesla declares 2019 a turning point

Go deeper

Janet Yellen confirmed as Treasury secretary

Janet Yellen. Photo: Alex Wong/Getty Images

The Senate voted 84-15 to confirm Janet Yellen as Treasury secretary on Monday.

Why it matters: Yellen is the first woman to serve as Treasury secretary, a Cabinet position that will be crucial in helping steer the country out of the pandemic-induced economic crisis.

Dan Primack, author of Pro Rata
4 hours ago - Economy & Business

Scoop: Red Sox strike out on deal to go public

Illustration: Sarah Grillo/Axios

The parent company of the Boston Red Sox and Liverpool F.C. has ended talks to sell a minority ownership stake to RedBall Acquisition, a SPAC formed by longtime baseball executive Billy Beane and investor Gerry Cardinale, Axios has learned from multiple sources. An alternative investment, structured more like private equity, remains possible.

Why it matters: Red Sox fans won't be able to buy stock in the team any time soon.