Tesla’s stock is currently up by 1.8% at $179.89, despite Morgan Stanley analysts downgrading its earnings projections and price target due to falling demand for electric vehicles and ongoing price reductions.

The 12-month target price has been lowered to $320 from $345, with a revised earnings per share forecast of $0.99.

Decreased demand, particularly in regions not favorable to electric vehicles, is expected to result in a loss in Tesla’s automotive sector. In China, an oversupply in the electric vehicle market has led to significant price drops and potential competition by 2024. Tesla’s year-to-date is down more than 27.00%.