Tesla stock (TSLA) was set to extend gains after jumping more than 10% on Tuesday as the electric vehicle giant reported quarterly vehicle deliveries that beat Wall Street expectations.

Shares in the Elon Musk-led carmaker rose over 3% in premarket trading on Wednesday.

The EV maker delivered 443,956 vehicles during the second quarter, versus an analyst consensus estimate of 439,302, per Bloomberg data.

“In the second quarter, we produced approximately 411,000 vehicles and delivered approximately 444,000 vehicles,” read a company statement. Broken down by car type, Tesla said it delivered 422,405 models 3/Y and 21,551 other models.

That second quarter total delivery figure is higher than the 386,810 vehicles globally delivered in the first quarter but lower than the approximate 466,140 delivered a year ago.

Despite the year-over-year drop in deliveries, some analysts pointed to signs the EV industry may be holding up better than expected.

"We continue to see scope for improving sentiment in Tesla shares as well as broader EV sentiment as compared with the negative sentiment we have seen over the past ~6 months," wrote Citi analysts on Tuesday.

"From here, the focus will turn to Tesla's Q2 auto gross margins to gauge the price vs. cost equation (Tesla reports July 23), as well as any updates on future product launches," said the note.

Tesla has faced stiff competition abroad from its Chinese counterparts amid a waning market for EVs. In an effort to reduce costs, Tesla embarked on a plan to cut more than 10% of its global staff earlier this year in what some analysts saw as a signal of tough times ahead.

During Tesla's shareholder meeting last month CEO Elon Musk confirmed that near-term demand and sales will still struggle somewhat as the industry goes through a transitionary period.

“It’s tough sledding out there,” Musk said with regard to the EV market, adding that competitors have also been scaling back their investments and production of electric vehicles.

Ahead of the delivery numbers on Monday, Wells Fargo analysts noted the company’s gross margin will likely be impacted amid a crowded market.

“Flattening EV adoption in the US and EU, with aggressive competition in China leave little immediate levers to pull to increase volumes,” wrote Colin Langan and his team. The firm has an Underweight rating on the stock with a $120 price target.

Tesla does not break out its sales of the Cybertruck, but investors have been able to pick up on hints about those deliveries based on recalls. Last month Tesla announced its fourth Cybertruck recall since the vehicle’s release late last year. Within the recall notice, 11,688 trucks appeared to be affected.