BofA lowered the firm’s price target on Tesla to $380 from $490 and keeps a Neutral rating on the shares.

Tesla shares sank 3% in premarket trading.

The stock has been under pressure in recent weeks due to concerns about new vehicle sales dropping 45% year-over-year in the EU in January, sentiment on the brand potentially souring, no news on the low-cost model launch and risk to the Robotaxi launch.

Given the slower growth and rising risks, BofA now values the Automotive business at 9-times EV/EBITDA, down from 10-times previously, in its sum-of-the-parts analysis, the analyst tells investors.