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Tesla sales, hit by a significant slump earlier this year, may be showing signs of revival.

Elon Musk's electric car-maker delivered nearly 444,000 vehicles in the three months ended 30 June, up more than 14% from the prior quarter.

That was far more than most analysts had expected - though still down nearly 5% from the same period in 2023.

Tesla has been navigating a slowdown in demand, as high borrowing costs weigh on buyers and competition increases.

It has slashed prices repeatedly to try to win back shoppers, while also introducing low-cost borrowing plans.

But its success in this has been limited.

The firm, which announced plans in April to sack more than 10% of its workforce, has seen sales fall in the first half of the year.

At the start of the year, Tesla blamed its poor performance in part on supply shortages due to shipping disruption in the Red Sea and an alleged arson attack at its factory in Germany.

But analysts say Tesla needs to freshen its line-up, if it hopes to stop rivals from making inroads.

The company started selling its cyber-truck last year but that remains a tiny part of its business. Its mainstream Model 3 sedan was first released in 2017.

Mr Musk, who recently won shareholder support for a record-breaking pay package worth roughly $50bn, has outlined a bright future for the firm, underpinned by self driving and automation.

And despite industry concerns that demand for electric vehicles in the US in recent months has been weaker than anticipated, the sector is still growing globally.

More than one in five cars sold this year around the world are expected to be electric - including nearly half in China and roughly a quarter in Europe, .

Wedbush Securities analyst Dan Ives said he thought the worst was behind Tesla, noting signs of improvement in China, where the government recently announced it would give money to people who trade in older cars in a wider boost for the industry.

"While its been a difficult period for Tesla and the company has been through some significant cost reductions (roughly 10%-15%) to preserve its bottom line/profitability, it appears better days are now ahead," he wrote in a note to investors on Tuesday.

He said he expected the firm's upcoming August presentation on robotaxis to drive a new wave of growth.

Shares in the firm jumped more than 6% in morning trade on Tuesday following the news.