Vinfast Reports a Second-quarter Loss of Half a Billion Dollars

VinFast Auto Ltd. reported a substantial second-quarter loss totaling $500 million, revealing that it successfully delivered over 9,000 electric vehicles on a global scale, generating sales revenue of approximately $315 million during the same period.

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VinFast, the Vietnamese electric vehicle manufacturer, entered the public market in August through a Special Purpose Acquisition Company (SPAC) deal. The stock experienced a remarkable surge, more than tripling in value by the end of its inaugural trading session, propelling the company's market capitalization to over $200 billion.

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As of Thursday, VinFast's market capitalization stood at around $36 billion, slightly below the market values of industry giants such as Ford Motor Co. ($48 billion) and General Motors Co. ($45 billion). Nevertheless, on Thursday, the company's stock witnessed a decline of over 8%, closing at $15.75, with a marginal 0.3% decrease during the extended trading session.

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During the second quarter, the company reported a significant increase in electric vehicle deliveries, totaling 9,535 units, compared to a mere 1,780 vehicles in the preceding quarter. Notably, vehicle sales revenue exceeded $315 million, contributing significantly to the overall quarterly revenue of $334 million. VinFast's product portfolio extends beyond electric vehicles, encompassing e-scooters and electric buses.

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For the second quarter, VinFast posted a net loss of $526.7 million, representing an 8% reduction in quarterly losses compared to the corresponding period in the previous year. It is worth noting that FactSet does not compile analyst estimates for VinFast.

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It is essential to highlight that the majority of VinFast shares, approximately 99%, remain under the control of Vingroup's chairman and VinFast's founder, Pham Nhat Vuon, with only a limited portion available to external investors.

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VinFast operates as a majority-owned subsidiary of Vingroup, a conglomerate that ranks among Vietnam's largest publicly traded companies.

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In a significant development, VinFast initiated construction on its North Carolina facility in July, with plans to invest up to approximately $2 billion initially. The company aims to achieve an annual production capacity of 150,000 electric vehicles as the facility matures.

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While VinFast's stock witnessed a 54% decline during the current month, it is important to note that the shares have registered a notable 57% increase year-to-date, surpassing the S&P 500 index's performance, which posted an approximately 13% advance during the same period.

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