Tesla's electric car sales will suffer due to increased competition from other luxury automakers, according to Goldman Sachs.
The firm resumed coverage of Tesla with a sell rating, predicting the competition will cut into the company's share of the electric car market.
"We see the medium-to-longer term industry backdrop as challenging for Tesla's products; this follows from an increasing number of EV launches from both traditional OEMs and other start-up competitors — at a time when the company's product cadence hits a gap," analyst David Tamberrino said in a note to clients Tuesday. "We believe the company will see pressure to its lead in EVs as competition catches up."
Tesla shares were down 4.2 percent Tuesday.