Jefferies analysts downgraded Tesla (NASDAQ:TSLA) shares to Hold from Buy after the electric vehicle (EV) maker implemented several rounds of price cuts to boost demand for its products.

The price target goes to $185 per share, down from the prior $230, signaling returns of ~14% relative to yesterday’s closing price.

On the latest earnings call, Tesla’s management also warned that it is likely to continue cutting EV prices to find buyers after it invested billions to ramp up supply.

“Q1 results did not validate demand elasticity offsetting lower prices and cost progress may take longer to materialize. Mgmt is ready to accept lower margins for now if Tesla remain self-funded. Tesla is finally accelerating wholesale storage, critical to integrate renewables into the grid,” the analysts wrote in a client note.

While the analysts remain cautious on Tesla’s near-term earnings, they believe the long-term Tesla story remains intact.

“Despite reset expectations, lower returns will be a drag until earnings upgrades start materializing possibly late 2023. Comments of lifetime earnings and zero margin transactions look off-the-cuff but do not support confidence in higher multiples,” they added.

The lowered price target reflects slashed 2023 estimates with the analysts now expecting the company will deliver 1.79 million units in 2023 with an average selling price of $46,000.

Tesla stock price closed at $160.67 on Tuesday and is up 30.4% year-to-date (YTD).