10:52 AM EDT, 07/02/2025 (MT Newswires) -- Tesla (TSLA) is on a path to accelerated growth over the coming years, supported by autonomy, robotics, and rising vehicle deliveries, Wedbush Securities said in a Wednesday note.

The company delivered about 384,000 vehicles in Q2, slightly below Wall Street's estimate of 385,000 but above more cautious expectations of around 365,000, the investment firm said.

Model 3/Y deliveries totaled about 374,000, topping the consensus estimate of 367,100, while other models came in below expectations. Production stood at about 410,000 vehicles.

Tesla saw a recovery in China in June after months of declining sales, driven by improved demand for the updated Model Y and stronger output at the Shanghai plant, according to the note.

The company continues to face competition from local EV makers such as BYD, Nio, and Xpeng, but has managed to boost demand with product updates.

Delivery growth is expected to pick up in H2, led by the refreshed Model Y, Wedbush said.

The brokerage also expects Tesla to dominate the US autonomous vehicle market with the initial launch of its unsupervised Full Self-Driving system in Austin, despite regulatory and competitive hurdles.

Tensions between Elon Musk and Donald Trump have raised concerns among investors, particularly around potential policy shifts related to autonomous vehicle regulation, the note added.

Wedbush maintained an outperform rating for Tesla with a $500 price target.

Shares of Tesla were up 4.1% in recent trading.

Price: 312.96, Change: +12.25, Percent Change: +4.07