Investing.com – Tesla (NASDAQ:) electric vehicle deliveries will rise 8% to around 470,000 units in the third quarter compared to the same period last year, according to analysts at Barclays.

In a note to clients, analysts added that their estimate was above the consensus estimates of 461,000 compiled by the company.

“Given the positive data reported so far in the quarter, particularly in China, we believe Tesla’s revenue performance is well understood and investors expect an improved result,” the analysts said.

They estimated that Tesla’s third-quarter deliveries in China, the world’s largest auto market and a key indicator of global demand for electric vehicles, would likely be around 179,000, which would be a quarterly record. They said the company’s earnings in the country, where it is engaged in an ongoing price war with domestic rivals, were “surprisingly robust.”

“We expect China’s strength to be more a result of better macro/electric vehicle demand. However, it is also possible that incentives/pricing or even renewed interest ahead of the launch of fully autonomous driving (FSD) technology in 2025 will drive demand,” they said.

Tesla has announced that it plans to launch FSD in China early next year, subject to regulatory approval. This is slightly later than CEO Elon Musk’s previous plans to unveil the technology by the end of this year.

In the second quarter, the company reported a better-than-expected delivery rate and significantly more than the number of vehicles produced, indicating an improvement in demand that could ease concerns about excess inventory of its flagship Model 3/Y.

Tesla’s deliveries, which closely track sales, were 443,956 in the second quarter, beating Wall Street estimates of around 438,000, raising hopes that the worst of the downturn in the electric vehicle market overall may be behind us.