Shares of Tesla, Inc. (NASDAQ:TSLA) are rising strongly in premarket trading on Monday, reversing part of Friday's losses. The positive sentiment toward the electric vehicle maker's stock is attributable to optimistic expectations concerning third-quarter deliveries.

The company typically releases the data just after the end of the quarter and therefore it could be announced in a little over a week's time. On Monday, Barclays analyst Dan Levy said Tesla is on track to report third-quarter deliveries of 470,000 units, ahead of the 461,000 consensus estimate, TipRanks reported, citing The Fly.

The analyst's deduction could have some premise to fall back on. Weekly insurance data for Tesla vehicles in China has risen strongly so far this quarter. Fund manager Gary Black commented on the strong 15,6000 insured registrations for the week of Sept. 9-15 and said the company is on track to record its every quarter.

On the other hand, things are not positive in Europe as data released by the European Automobile Manufacturers Association showed that Tesla volumes in Europe dropped 36% year-over-year to 21,701 vehicles in August. "The electric car market is now on a continual downward trajectory," the ACEA said in a statement.

Tesla is better positioned to outperform, given the Federal Reserve's interest rate cuts could open the floodgates of demand, which has been under pressure due to inclement economic conditions. Also, Tesla's valuation is cheap relative to other mega-cap peers.

In premarket trading on Monday, Tesla rose 1.45% to $241.70, according to Benzinga Pro data. Other Magnificent 7 stocks were showing muted sentiment. Apple, Inc. (NASDAQ:APPL), Amazon.com, Inc. (NASDAQ:AMZN) and NVIDIA Corporation (NASDAQ:NVDA) were little changed, and Microsoft Corporation (NASDAQ:MSFT) fell moderately.

Meta Platforms, Inc. (NASDAQ:META) climbed 1.20%, and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) rose moderately.