The electric car company Tesla has announced a record annual profit of More than $5.5 billion (£4.1 billion).

The Daily Telegraph reports that a surge in demand for EVs has seen full-year profits over seven times higher with sales up 71% to $54 billion (£40 billion), both “shattering” Tesla’s previous records and making 2021 a “breakthrough year”.

Tesla reports that deliveries climbed by 87% which the company said pushed its margins above other car manufacturers in a demonstration that electric vehicles can be more profitable than combustion engine vehicles.

The Telegraph adds that Tesla sold a record 936,000 cars last year as its Model 3 (pictured) became the second-most popular vehicle in the UK and the most popular electric car in Europe.

(Picture – Tesla)