Fourth quarter results announced by Tesla on Wednesday showed better than expected revenue and profit, sending shares sharply higher in after-hours trading.

The report was the latest in a spate of good news for the firm founded by controversial entrepreneur Elon Musk after it reported earlier this month that it delivered 112,000 vehicles in the fourth quarter, a jump of nearly 23 percent compared to the same period in 2018.

The healthy earnings followed a similarly cheery third quarter report in October, the company's launch of a new SUV design in November and the successful ramp-up of a new car factory in China earlier in January.

Revenues in the fourth quarter ending December 31 were up just two percent compared to December 2018, but the sales of $7.38 billion were still above expectations of $7.02 billion.

Net income in the fourth quarter hit $105 million, a drop of 25 percent from the end of 2018, and profit was down four percent to $1.39 billion from $1.44 billion posted in the fourth quarter of 2018. Tesla has yet to make a full-year profit.

Nonetheless, the earnings report, which was released after hours, sent shares surging by 11.6 percent to $649.50, with Tesla's market capitalization of $105 billion making it the most-valuable US automaker.

"2019 was a turning point for Tesla," the company said in a statement announcing earnings. "As more people drive our cars and as the industry rapidly validates electrification, interest in our products will continue to grow."

The company is now also the second most valuable automotive group in the world behind Toyota and ahead of Volkswagen, with a goal of delivering more than half a million cars in 2020, a jump of 36 percent compared to the year prior.

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