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).