Sell Tesla because Model 3 sales will disappoint next year, Goldman Sachs says

A Tesla Model S in a Tesla showroom in Brooklyn, New York
Spencer Platt | Getty Images

Goldman Sachs cut its rating on Tesla to sell from neutral, saying delays in the large-scale production of its next electric car will mean lower-than-expected sales next year.

"We expect to see pressure on shares as we progress through the year, as cash burn intensifies and the ramp of Model 3 volumes proves to be slower and flatter than assumed in guidance/consensus," analyst David Tamberrino wrote in a note to clients Monday.

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