Tesla will report its first-quarter earnings after the market closes on Wednesday, and some analysts have a bearish outlook heading into the print.

Much of the analysts’ concern surrounds Telsa’s margins after implementing price cuts on many of its most popular models.

Matt Tuttle of Tuttle Capital Management said he is not optimistic about Tesla earnings this week.

“I wouldn’t be surprised to see the stock make a run to $150,” Tuttle said, per MarketWatch.

Piper Sandler analyst Alex Potter remains concerned about Tesla’s pricing strategy.

He said investors should expect Tesla’s price cuts to continue. He also noted that when wait times for Tesla’s vehicles fall to four to six weeks, the company tends to adjust prices.

Potter added that although price cuts hamper the company’s margins, Tesla can absorb margin pressure due to its best-in-class cost structure.

Wells Fargo analyst Colin Langan reaffirmed a Hold rating for Tesla last week and set a $190 price target for the company, according to TipRanks.

Langan predicts Tesla will deliver earnings of 69 cents per share, per TipRanks, far below Wall Street analyst consensus estimates of 86 cents per share.

While Tesla stock has fallen 45% over the past year,  shares are up 47% year to date, outpacing the S&P 500, which is up about 7%. Tesla shares closed Monday at $187.04.

Analysts say the EPA’s latest guideline proposal for its strongest-ever emissions standards on Wednesday is another catalyst for Tesla stock.

According to MarketWatch, the proposal is designed to boost EV adoption; it calls for two out of every three new passenger automobiles sold in the United States to be electric by 2032.

The private sector has committed over $120 billion in domestic EV and battery investments since the Inflation Reduction Act was signed into law, according to the EPA.

Baird analyst Ben Kallo wrote in a recent analyst note that Tesla will benefit the most from these recent developments due to its U.S. manufacturing abilities, per MarketWatch.

Kallo reaffirmed a Buy rating for Tesla with a $252 price target, according to TipRanks.