Tesla reports $2.7-billion Q2 income

SAN FRANCISCO, California: Elon Musk's big bet that Tesla price cuts could boost sales and profits amid increasing competition and poor economic sentiment appears to be yielding mixed results. Sales jumped, and the company beat analyst expectations for net income in the April-June quarter, although the company's profit margins declined. Tesla shares followed suit in after-hours trading.

The Austin, Texas maker of electric vehicles, solar panels and batteries reported net income of $2.7 billion in the quarter, a 20-percent increase from a year ago. Earnings per share also rose 20 percent to 78 cents when measured via generally accepted accounting principles. Total revenue rose 47 percent to $24.93 billion.