12:43 PM EDT, 07/02/2024 (MT Newswires) -- Tesla (TSLA) reported stronger-than-expected second-quarter deliveries, which Wedbush Securities said indicate the worst is over for the electric vehicle maker.

The company delivered 443,956 vehicles in the June quarter, Tesla said Tuesday. That marked a decline from the 466,140 deliveries Tesla posted in the same period a year ago but was ahead of the consensus on Visible Alpha of 438,900 vehicles.

"This was a huge comeback performance from Tesla and [Elon] Musk with the Street expecting a clear miss this quarter with EV demand still choppy globally," Wedbush analysts including Daniel Ives said in a note.

The brokerage reiterated an outperform rating and a $275 price target on the stock. Shares of Tesla soared 9% in midday trade.

Tesla's second-quarter production fell to 410,831 vehicles from 479,700 year over year and missed the Visible Alpha view of 457,700 units.

"It appears China saw a 'mini rebound' in the quarter along with pricing stabilization that helped Tesla battle through headwinds to deliver a much stronger delivery quarter than even the bulls were expecting," Ives said.

Among Chinese competitors, Li Auto ( LI ) reported on Monday a 25.5% year-over-year increase in second-quarter deliveries at 108,581 vehicles, while Nio's (NIO) second-quarter tally surged about 144%. XPeng ( XPEV ) said deliveries for the month of June were up 24% to 10,668.

Looking ahead, Tesla's Aug. 8 Robotaxi launch represents a near-term catalyst for the stock, according to Wedbush. "In a nutshell, the worst is in the rear view mirror for Tesla as we believe the EV demand story is starting to return to the disruptive tech stalwart ahead of a historical Robotaxi Day," Ives said.

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