Polestar is stepping up its rivalry with Tesla by rolling out aggressive incentives aimed directly at Tesla owners in the United States.

Tesla received a fresh price target increase from Morgan Stanley on Monday, but the bank’s new analyst is signaling a more cautious outlook for the year ahead. Andrew Percoco, who has taken over Tesla coverage from longtime bull Adam Jonas, raised the firm’s price target from $410 to $425. At the same time, he downgraded the stock’s rating from “Overweight” to “Equal Weight.”

Tesla is requiring its suppliers to avoid using China-made components in vehicles manufactured for the U.S. market.

Tesla reported a significant decline in second-quarter profits on Tuesday, attributing the drop to recent price cuts and increased spending on autonomous driving and other technologies.