Harley-Davidson shares surged over 20% following the company’s announcement to sell a nearly 10% stake in its finance unit, Harley-Davidson Financial Services (HDFS), along with more than $5 billion in retail loans to investment firms KKR and PIMCO. This transaction unlocked approximately $1.25 billion in cash, enabling Harley-Davidson to transform HDFS into a capital-light business, which supports debt reduction and shareholder returns. The stock rally overshadowed the company’s second-quarter financial results, which showed a profit decline to $108 million and earnings per share of 88 cents, missing analyst estimates. Revenue fell 19% to $1.3 billion amid tariffs, high borrowing costs, and declining demand that also forced production cuts. Despite the challenges in motorcycle sales and profitability, the market responded positively to the strategic financial move.