Tesla reported a 26 percent increase in quarterly revenue, reaching approximately $28 billion, according to a report by German media outlet Welt.
The top-line growth was driven by record vehicle deliveries, yet the expansion came at the cost of average selling prices.
Investment strategists cited in the report noted that the revenue gain was effectively purchased through substantial price discounts, raising questions about the sustainability of the company's pricing power.
The electric vehicle maker’s shares fell sharply in extended trading following the release of second-quarter earnings, which missed analyst expectations despite the delivery record.
The stock dropped 8.3 percent, reflecting investor concern over the trade-off between volume and margin.
The market reaction underscores a growing skepticism regarding Tesla’s ability to maintain profitability while aggressively cutting prices to sustain demand.