Deutsche Bank analysts lowered their price target on Tesla, Inc. (NASDAQ:TSLA) to $270 from $355 ahead of the company’s upcoming Q4 deliveries and production figures report, expected to be announced right after New Year.

The analysts have revised their estimate for Q4 deliveries down to 420,000 units, an increase of 36% compared to the previous year. This change is due to some economic challenges in China and some U.S. consumers choosing to postpone their deliveries until Q1/23 in order to take advantage of IRA incentives.

The analysts expect approximately 136,000 units of Model 3+Y deliveries in China, with the rest to come from North America (143,000), Europe (84,000), and the Rest of the World (40,000).

All in, Deutsche Bank’s Q4 revenue is lowered to $20.8 billion on reduced volume, down from $22.5 billion. The analysts have also lowered their expectations for gross margin, from an increase of 100 basis points quarter-over-quarter to a decrease of 30 basis points quarter-over-quarter. This change is due to some improvements in the cost of ramping up production, but these improvements are largely offset by recent price cuts and incentive offers in China, the U.S., and Europe.