Tesla's Surprise Revenue Surge Amid Price Cuts and Incentives

Tesla reported a surprising rise in revenue for the second quarter as it delivered more electric vehicles than anticipated. Despite shares falling by 4% post-market, Tesla's financial strategies, including low-interest loans, have buoyed sales. Revenue hit $25.50 billion, surpassing estimates of $24.77 billion.

Tesla has announced an unexpected rise in revenue for the second quarter, largely due to higher-than-predicted electric vehicle deliveries fueled by price cuts and buyer incentives.

Despite this financial win, shares of the electric vehicle giant fell by about 4% in post-market trading. Analysts suggest that Tesla's strategy of offering less expensive financing rather than large price cuts will distribute the negative impact on margins over multiple quarters.

While deliveries exceeded market expectations, bolstered by low-interest loan options, they have declined for two consecutive quarters. Tesla continues to heavily invest in its self-driving technology and robotaxi initiatives, although the official reveal of the robotaxi has been delayed. The company reported revenues of $25.50 billion for the quarter ending in June, surpassing the $24.77 billion estimated by analysts. Net income for the quarter decreased to $1.48 billion from $2.70 billion last year.

(With inputs from agencies.)