Goldman Sachs analysts downgraded Tesla stock to Neutral from Buy following a massive year-to-date rally in the electric vehicle (EV) maker’s stock.

Still, they raised the price target to $248 per share from the prior $185, reflecting increased EPS estimates and a higher target multiple.

The analysts remain positive on Tesla’s long-term growth potential and competitive positioning. However, the 108% YTD rally (+38% in the last month) means that “the stock now better reflects” Goldman’s bullish stance on the EV manufacturer.

“Overall we believe our view that Tesla is well positioned for long-term growth, given its leading position in the EV and clean energy markets (which we attribute in part to its ability to offer full solutions including charging, storage, software/FSD and services with a direct sales model), is now better reflected in the stock,” they said in a client note.

While the downgrade move was mostly driven by valuation, the analysts also highlighted a “difficult pricing environment for new vehicles,” which they believe will hurt Tesla’s non-GAAP gross margin in 2023.

Overall, Goldman remains “positive on EV adoption, and we continue to see the most investing opportunities among our broader set of suppliers, especially those with higher content to enable the shift to EVs and electrification.”

Tesla stock is down 1.4% in premarket Monday.

Goldman’s new price target implies a downside risk of about 3% relative to Friday’s closing price.

This is the 4th downgrade for Tesla stock in June. Morgan Stanley and Barclays analysts downgraded the stock to Equal Weight last week.