12:32 PM EDT, 10/21/2024 (MT Newswires) -- Tesla (TSLA) is expected to report "generally in-line" third-quarter headline results later this week, with investors likely to focus on Chief Executive Elon Musk's remarks on the electric vehicle demand outlook, Wedbush Securities said in a Monday client note.

Earlier in the month, the EV manufacturer unveiled prototypes of a two-seat vehicle called "Cybercab" and a "Robovan" 20-person vehicle at its "We, Robot" event. However, the event lacked key details and updates, leaving analysts and investors disappointed.

"While many investors left the Robotaxi Day clearly wanting more details on the broader autonomous and (artificial intelligence) strategy at Tesla, we would expect Musk to address some of the timing/specifics around its (Full Self-Driving) and Cybercab strategy on the conference call this week," Wedbush analysts led by Daniel Ives wrote in the note. Ives anticipates Tesla to possibly give an update on the timing for the vehicle, which is expected to launch in the middle of next year.

Tesla is scheduled to release its third-quarter results after markets close Wednesday.

Wedbush projects potential "slight upside" to the automaker's margins, which are expected to be a key investor focus during the call. The Street is looking to see a "levelling off" for auto gross margins, excluding credits.

"We need to start seeing this key metric head into the high teens for (the third and fourth quarters) to give the Street comfort much of the price cuts are in the rearview mirror showing better margin days are ahead for 2025," according to Ives.

Earlier in October, Tesla posted sequential and annual gains in its third-quarter vehicle deliveries, though the print missed Wall Street's whisper numbers. Wedbush said Monday it the company should be able to hit the target of 1.8 million deliveries for full-year 2024.

Wedbush expects Tesla to report significant growth in its key China market for the fourth quarter. Europe continues to be "a slight overhang" with subsidies and macro pressures, but the brokerage expects this to be offset by demand stabilization in the US and an improving outlook in other regions of the world.

Webush maintained its outperform rating on Tesla's stock and reiterated the 12-month price target of $300. "Deliveries in the near-term will drive the stock and the Street will be laser focused on (the third-quarter) showing a margin/demand inflection point in the Tesla story heading into 2025," Ives said.

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