Shares of electric truck manufacturer Rivian Automotive (NASDAQ: RIVN) experienced a rough start to the year as the stock stumbled 10% on the first trading day of 2024. The decline came after Rivian reported a sequential slowdown in Q4 deliveries, leaving investors concerned about the company's ability to generate strong sales.

Further exacerbating the situation, Rivian's stock continued to decline on Wednesday, falling an additional 4.3% as of 12:45 p.m. ET in response to a lukewarm price-hike note from investment bank Goldman Sachs.

In its recent update on production and deliveries for 2023, Rivian showcased positive results in terms of production numbers. The company exceeded its own forecast by producing a total of 57,232 electric trucks and SUVs throughout the year, surpassing the target of 54,000 units. Additionally, Q4 production reached 17,541 vehicles, representing a solid increase of 7.5% compared to Q3 production levels.

However, the issue for Rivian lies in its ability to sell and deliver the products it is manufacturing. Q4 deliveries were disappointing, totaling only 13,972 units. This figure represents a 10% decrease from the previous quarter's deliveries and a 20% shortfall compared to the total number of units produced. These numbers have understandably unsettled investors.

Goldman Sachs, in its response to the news, made an interesting move by raising its price target on Rivian stock while maintaining a neutral buy recommendation. This decision suggests that the investment bank is not fully convinced about the prospects of Rivian's stock.

Goldman Sachs cited weak delivery numbers as one of the reasons for its reserved stance. Additionally, the bank expressed uncertainty about Rivian's ability to sustain pricing and growth in an increasingly competitive electric vehicle market. As more companies enter the market, Rivian may face challenges in maintaining profitability and market share. To attract buyers, Rivian might be forced to reduce prices, potentially affecting its gross profit margin.

Market consensus on Wall Street indicates that Rivian is not expected to achieve its first substantial profit based on generally accepted accounting principles (GAAP) before 2030 at the earliest. This long-term outlook raises concerns among investors who may be hesitant to wait years for Rivian's success to materialize.

While the current situation may be discouraging for Rivian Automotive and its shareholders, it's important to note that investment decisions should consider multiple factors. The Motley Fool Stock Advisor analyst team, for example, recently identified ten stocks they believe have high growth potential, but Rivian Automotive did not make the list.

Investors who are considering investing in Rivian Automotive should carefully evaluate these developments and take into account their own investment strategies and risk tolerance.

Disclaimer: The article was written based on the provided text by Rich Smith, The Motley Fool. The author of this news article has no position in any of the mentioned stocks. The Motley Fool has positions in and recommends Goldman Sachs Group. The Motley Fool has a disclosure policy.