Electric vehicle manufacturer Tesla, Inc.s TSLA Shares are expected to outperform on Monday as they rose significantly in premarket trading.

The stock fell 8.78%, or $20.97, last Friday before closing at $217.80, its lowest closing price since September 9.

Premarket strength could indicate bargain hunting after the stock plunged 13% in the week ended Oct. 13. Even if the stock recovers in the short term, a sustained uptrend is unlikely until the company's third-quarter earnings report is released. Investors are skeptical about the impact of incentives to boost sales on margins.

See also: How to buy Tesla (TSLA) shares

Tesla is expected to report its quarterly results after the market closes on October 23rd. Analysts on average expect the company to report earnings per share of 57 cents, compared with 66 cents a year ago. Sales may have increased by 14.70% to $25.34 billion. The company reported its first year-over-year shipment growth in three quarters earlier this month.

As Tesla plunged nearly 9% on Friday, Cathie Wood-Operate Ark Invest's ARK Next Generation Internet ETF ARKW bought 12,730 shares of the company led by Elon Musk. At Friday's closing price, the purchase is worth $2.77 million.

The stock could also be boosted by its sister company SpaceXs Success in catching spaceship First time as a launch vehicle when it returned to Earth after its launch.

According to Benzinga Pro, Tesla shares rose 1.13% to $220.26 premarket.

Read more:

Image via Flickr