Goldman Sachs downgrades Tesla shares

According to Business Insider, investment bank Goldman Sachs has downgraded Tesla shares to "neutral". This is because the electric car company is considered overvalued and its shares are trading at higher multiples compared to other high-growth tech companies.

The bank warns that Tesla's stock could slow its rapid growth in the near future, but that doesn't mean Goldman is denying the company's prospects entirely.

Tesla stock has several positives that could support its long-term gains. For example, the recent opening of a charging network for competing car companies and the planned launch of an affordable electric car for about $20,000. These factors could drive demand for Tesla products.

Analysts at Goldman Sachs believe that overall, Tesla has the potential for long-term growth, given its leadership in the electric vehicle and clean energy markets. However, they note that these factors are already reflected in the company's valuation, and the stock trades at higher multiples than other high-growth technology stocks such as Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD).

Tesla's recent decline in car prices could also put pressure on the company's margins and temporarily dampen its share price.