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