Shares of Tesla subsidiary TSL rose sharply in premarket trading on Monday, making up for some of Friday’s losses. The positive sentiment towards the electric vehicle manufacturer’s shares is due to optimistic expectations regarding deliveries in the third quarter.

The company usually releases data shortly after the end of the quarter, so it could be in just over a week. On Monday, Barclays analyst Daniel Levy Tesla is on track to report 470,000 deliveries in the third quarter, above the consensus estimate of 461,000, TipRanks reported, citing The Fly.

The analyst’s conclusion may be based on a premise. Weekly insurance data for Tesla vehicles in China has risen sharply so far this quarter. Fund manager Gary Black commented on the strong 15,600 insurance filings for the week of September 9-15 and said the company is on track to achieve a new high each quarter.

Things are not looking good in Europe, however, as data from the European Automobile Manufacturers Association showed that Tesla’s numbers in Europe fell 36% year-on-year to 21,701 vehicles in August. “The electric car market is currently on a continuous downward trend,” the ACEA said in a statement.

See also: How to buy Tesla shares (TSLA)

Tesla is better positioned to outperform as the Fed’s rate cuts could revive demand that has been under pressure due to adverse economic conditions. Additionally, Tesla is cheaply valued compared to other mega-cap companies.

In premarket trading on Monday, Tesla rose 1.45% to $241.70, according to Benzinga Pro data. Other Magnificent 7 stocks showed subdued sentiment. Apple, Inc. APPLICATION, Amazon.com, Inc. Amazon And NVIDIA Corporation NVDA were hardly changed, and Microsoft Corporation MSFT fell moderately.

Meta Platforms, Inc. META rose by 1.20% and Alphabet Inc. GOOGLE GOOG rose moderately.

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