Wall Street analysts polled by Bloomberg expect the EV giant to deliver adjusted earnings per share of $0.60 on revenue of $25.42 billion. Global deliveries, which improved sequentially for the first time this year, along with a potential tick-up in automative gross margins, should help boost profits in the quarter.
However, investors remain on edge when it comes to the company's future investments after last week's robotaxi unveiling fell short of expectations.
In a note to clients following the event, Jefferies analysts called the $30,000 driverless robotaxi, dubbed the Cybercab, a "toothless taxi," adding that Tesla has "ambitious targets" with "little evidence of feasibility."
The new Cybercab, designed to be fully autonomous, has no steering wheel or pedals. Production is slated to begin "before 2027," according to CEO Elon Musk, and will likely be a big talking point on the earnings call.
"Investors may seek details on the rollout of Tesla's sub-$30,000 vehicle," Bloomberg Intelligence analyst Steve Man wrote on Friday. "For high-volume sales, the automaker might need to include traditional features like a steering wheel and pedals in its Cybercabs."
Tesla shares, which have seen volatile swings over the past few months, are down about 10% since the start of the year.
Consumer, labor checks
Retail sales for the month of September came in marginally above consensus expectations earlier last week, signaling that the US economy remains strong. But investors will have more data points to chew on, with the final reading of the University of Michigan's consumer sentiment index due Friday.
For the final reading of October, sentiment is expected to tick up to 69.5 after the index's preliminary reading unexpectedly fell for the first time in three months to 68.9 in September.
According to the University of Michigan, consumers have continued to express frustration over high prices despite moderating inflation data. This had offset more optimistic views of the jobs market, which remains a critical focus point for the Federal Reserve after it slashed interest rates by 50 basis points at its last meeting.
Markets are currently pricing in another 25 basis point cut in November, but Fed officials seem split on the path forward.
Earlier this week, San Francisco Federal Reserve president Mary Daly said one or two more rate cuts this year would still be a "reasonable thing to do" if inflation pressures continue to cool and the job market remains on solid footing.
"The work to achieve a soft landing is not fully done," Daly said in her speech on Tuesday. "We are resolute to finish that job."
But just one day prior, Federal Reserve governor Chris Waller said the central bank needs to be more cautious when it comes to rates, saying in a speech at Stanford University, "Data is signaling that the economy may not be slowing as much as desired."
Another round of jobless claims, due Thursday, will be closely scrutinized after the number of people filing for unemployment benefits fell back to earth in the week ending Oct. 12.
US jobless claims fell by 19,000 to 241,000, but economists have warned the labor market could be skewed in the near term following the aftermath of both Hurricane Helene and Hurricane Milton in the Southeast regions, along with the labor strike at Boeing.
"Hurricanes Helene and Milton and the Boeing strike are starting to distort the economic data, but given the timing of those storms -- with Helene making landfall September 26 and Milton on October 10 -- the most significant impact on the data is still ahead of us," Oxford Economics wrote in a note on Friday.
Economic data: Philadelphia Fed Non-Manufacturing Index, October (-6.1 prior); Richmond Fed Manufacturing Index, October (-21 prior); Richmond Fed Business Conditions (-3 prior)
Economic data: MBA Mortgage Applications, week ending Oct. 18 (-17.0% prior); Existing Home Sales, Sept. (3.88 million expected, 3.86 million prior); Federal Reserve Beige Book
Economic data: Initial Jobless Claims, week ending Oct. 19 (240,000 expected, 241,000 prior); Continuing Claims, week ending Oct. 12 (1.87 million prior); S&P Global US Manufacturing PMI, October preliminary (47.5 expected, 47.3 prior); S&P Global US Services PMI, October preliminary (55.2 expected, 55.2 prior); New Home Sales, September (720,000 expected, 716,000 prior); Kansas City Fed Manufacturing Activity, October (-8 prior); Chicago Fed National Activity Index, September (0.12 prior)
Economic data: Durable Goods Orders, September preliminary (-1.0% expected, 0.0% prior); Durables Ex-Transportation, September preliminary (-0.1% expected, 0.5% prior); University of Michigan Consumer Sentiment, October final (69.5 expected, 68.9 prior); Kansas City Fed Services Activity, October (-2 prior)
Click here for the latest stock market news and in-depth analysis, including events that move stocks