The Globe and Mail reports in its Friday edition that Tesla on Thursday posted record-setting second-quarter delivery numbers that smashed past Wall Street estimates, led by a rebound in Europe, feeding hopes that in 2026 the electric-vehicle maker can end its two-year streak of annual declines. A Reuters dispatch to The Globe says strong results from Tesla's mainstay auto business offer a crucial cushion as chief executive officer Elon Musk focuses on expensive ambitions in autonomous driving and artificial intelligence, the main drivers of the company's $1.6-trillion valuation. Shares of the Austin, Tex., company were down about 7 per cent in midday trading. Analysts and investors said optimism had been priced in as the stock gained 12 per cent earlier this week. Tesla's recovery in Europe was aided by a surge in fuel prices, government EV incentives, faster electrification of corporate fleets and easing of the consumer backlash over Mr. Musk's far-right politics last year. "I think the huge growth in Europe is the key driver for Tesla right now. U.S. sales still appear to be down, albeit less than the broader U.S. EV decline, while China is seeing small growth," said analyst Seth Goldstein at Morningstar.