Tesla Inc. reported better-than-expected revenue and announced an accelerated arrival of its next electric vehicle.

The company reported $7.38 billion in sales for the fourth quarter.

Tesla's GAAP gross profit of $4.1B remained essentially flat in 2019 compared to 2018. Volume growth and successful cost reduction efforts were offset by normalization of ASP, mix shift towards Model 3 and a higher lease mix. Sequentially, GAAP gross margin remained relatively flat in Q4 compared to Q3, while Tesla ramped Model 3 production at Gigafactory Shanghai.

In 2019, Tesla's revenue growth was positively impacted by a strong increase in vehicle deliveries (112,095 in Q4). Revenue growth was offset by higher lease mix, Model 3 becoming a larger part of Teesla's mix, introduction of the Standard Range trims of Model 3, and adjustments to vehicle pricing.

These changes have resulted in a reduction to the average selling price (ASP) relative to 2018. Tesla does not expect ASP to change significantly in the near term, which means volume growth and revenue growth should correlate more closely this year. The company is also positioned to accelerate its revenue growth further through increasing build rates in Gigafactory Shanghai and the new Model Y production line in Fremont. Tesla said that Model Y production ramp started in January 2020, ahead of schedule. The company has also increased Model Y all-wheel drive EPA range to 315 miles from 280 miles. The crossover will start deliveries by the end of March

Tesla also reported record Q4 storage deployment of 530 MWh and a 26% solar growth QoQ.

For full year 2020, Teesla expects vehicle deliveries to exceed 500,000 units. Due to ramp of Model 3 in Shanghai and Model Y in Fremont, production will likely outpace deliveries this year.

The company also expects both solar and storage deployments to grow at least 50% in 2020.