Tesla reported record deliveries in the fourth quarter but shares slide

CNI Desk: Tesla reported record deliveries in the fourth quarter, boosted by increased demand for electric vehicles.

But its shares fell in after-hours trading after profit fell short of analyst expectations.

While many car firms were hit hard in 2020 by the coronavirus pandemic, Tesla bucked the trend.

 

Its shares surged nearly 700% over the year, making it the world's most valuable carmaker.

Governments around the world have been "setting tougher targets for switching to electric vehicles", helping to increase interest in Tesla, said Rebecca Crook, chief growth officer at digital agency Somo.

Tesla, which is led by billionaire entrepreneur Elon Musk, saw steady sales and profitable quarters in 2020 as other car manufacturers were hit by the effects of the Covid-19 crisis.