• Goldman Sachs downgraded Tesla stock to "Neutral" after its monster year-to-date rally of 105%.

• The bank said Tesla's valuation is high and that there are a number of positive and negative catalysts going forward.

• "Valuation is full. Tesla trades at a higher multiple than other fast growing tech companies," Goldman said.

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Tesla stock is poised for a slowdown after its eye-popping year-to-date surge of 105%, according to a Sunday note from Goldman Sachs.

The bank downgraded Tesla stock to "Neutral" and said its "valuation is full" following its recent rally, according to the note.

But that doesn't mean Goldman is bearish on Tesla going forward. The bank highlighted a number of positive catalysts that could sustain long-term growth rates for the EV maker, including its recent opening of its charging network to competing auto companies, and the potential launch of an affordable EV priced closer to $20,000.

"Overall we believe our view that Tesla is well positioned for long-term growth, given its leading position in the EV and clean energy markets, is now better reflected in the stock," Goldman Sachs' Mark Delaney said. "Valuation is full. Tesla trades at a higher multiple than other fast growing tech companies" like Nvidia and AMD.

Delaney said that he expects Tesla's second-quarter vehicle deliveries to post close to consensus estimates of about 450,000, and that the launch of new products like the Cybertruck and a refreshed Model 3 represent tailwinds for the company.

But at the same time, recent car price reductions from Tesla are likely to continue to have a negative impact on Tesla's profit margins and should hold down the stock for now.

"We are also cognizant of the difficult pricing environment for new vehicles that we think will continue to weigh on Tesla's automotive non-GAAP gross margin this year," Delaney said.

The margin pressures combined with Tesla's high valuation gives Delaney comfortability in his downgrade call on the stock. Tesla stock currently trades at a forward price-to-earnings ratio of about 53x, which is more than Nvidia's 41x.

But Goldman could turn more bullish on Tesla stock if the company meaningfully ramps up the production of its third generation vehicle platform, that could include an affordable car, or if the company makes faster progress with its full-self-driving and artificial intelligence products.

Delaney increased his Tesla 12-month price target to $248 from $185, representing potential downside of less than 1% from current levels. Tesla stock fell nearly 3% in Monday's trading session.

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