Tesla Sales Surge as Tax Credits Fuel Demand

Tesla sales rose 10 percent in the second quarter as the company led by Elon Musk benefited from government incentives and price cuts that made its electric cars less expensive than comparable gasoline models.

Tesla delivered 466,000 vehicles from April through June, up from 423,000 vehicles in the previous quarter, the company said on Sunday. Compared with a year earlier, sales in the second quarter rose 83 percent as the company expanded production at new factories in Austin, Texas, and near Berlin.

Rules that took effect this year allowed buyers of Tesla vehicles to qualify for $7,500 in federal tax credits. With the credit, the least expensive Model 3 sedan sells for less than $33,000, cheaper than similar luxury sedans sold by Mercedes-Benz and BMW that run on gasoline and in line with mass market cars like the Toyota Camry and Honda Accord.

Owners of electric cars also benefit from fuel savings and lower maintenance costs. Electric vehicles don’t require oil changes, and electricity is generally cheaper per mile than gasoline.

Tesla is the dominant maker of electric cars in…