the Concerns about slowing demand for Tesla Inc. TSLA in China possibly unfounded, one analyst Webusch said.

The Tesla Analyst: Daniel Ive maintained an Overweight rating and price target of $175 on Tesla stock.

The Tesla thesis: About 76% of Chinese EV consumers are considering buying a Tesla vehicle in 2023, Ives said in a note, citing Wedbush’s proprietary survey of 500 customers in mainland China. The uniqueness of the brand, the design of Model 3/Y and battery technology three key reasons for Tesla’s consumer appeal remain, Ives added.

See also: The best stocks for electric vehicles

Tesla’s closest competitors BYD Manufacturing Company Limited BYDDY BYDDF and Nio Inc. NEVER took second and third place respectively, Ives noted.

When asked about the impact of the recent Model Y After the price cuts announced in the first week of January, about 70% responded that it had positively impacted their preference for the vehicle, Ives said. This proves that the price cuts have been a success from the start, he added.

Ives reiterated his view that China is the “heart and lungs” of the Tesla story and continued success in the key region is the lynchpin for the “Tesla bull thesis” in 2023 and beyond.

“Our conclusion from this proprietary EV survey is very positive for Tesla on the China front as Musk & Co. have gotten the track record back on track after a shaky few months in this key region,” the analyst said.

Even as macro headwinds persist, Tesla is battling well against domestic players and maintaining its market share in China, he added.

Price promotion: Tesla closed Thursday’s session down 1.25% at $127.17 Benzinga Pro data.

Continue reading: Tesla is no longer in the “top 10” in the EV fund due to competition, Musk’s Twitter