RBC Capital analysts lowered their price target on Tesla, Inc. (NASDAQ:TSLA) to $225 from $325 ahead of the quarterly deliveries report, which is expected on January 2, 2023.

Based on checks, regionally reported data, and app download data, the analysts forecast total Q4 deliveries of 408,500 units, which represents 32% year-over-year and 19% quarter-over-quarter growth. This is below the analysts’ prior estimate of 419,000 which they penciled in following Q3 earnings. The analysts tempered their view based on slowing orders in China as well as softer than anticipated demand in US/Europe.

There have been some negative factors affecting the stock, such as concerns about market demand, pricing, and the potential impact of GM's auto division and the distraction of Twitter on the Tesla brand. These concerns are warranted, and they may cause the stock to dip in the short term. However, the analysts believe that Tesla is well-positioned as the leading electric vehicle manufacturer and will begin generating significant free cash flow again in 2023.