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VinFast to showcase electric SUVs at Montreal EV Show

EditorAhmed Abdulazez Abdulkadir
Published 16/04/2024, 01:22 am
VFS
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MONTREAL - VinFast Auto (NASDAQ:VFS), a Vietnamese automaker, will participate in the Montreal Electric Vehicle Show (MEVS) 2024 from April 19-21, showcasing its VF (NYSE:VFC) 8 and VF 9 electric vehicle models. The event, which is Canada's premier electric vehicle show, will be held at the Montreal Olympic Stadium, where VinFast will be present at booth number 580.

The VF 8 model, designed for various terrains, features a dual electric motor with 349 horsepower and an all-wheel drive system. It offers an Environmental Protection Agency (EPA) range of up to 425 km. Its larger counterpart, the VF 9, is a full-size luxury SUV with 402 horsepower and an EPA range of up to 531 km, suitable for 6 or 7 passengers.

Both models are equipped with advanced driver assistance systems (ADAS) and modern technologies aimed at providing a safe and intelligent driving experience. The VF 8, in particular, will be available for test drives at the event, allowing visitors to experience its performance and technological features.

Deputy CEO of VinFast Canada, Robert Muller, expressed enthusiasm about the company's return to MEVS, emphasizing the opportunity to connect with fans and potential customers. He highlighted VinFast's commitment to meeting the needs of Canadian consumers with their lineup of electric vehicles.

VinFast's participation in MEVS is part of its global expansion strategy, which includes entering markets in the United States, Canada, Europe, and parts of Asia, the Middle East, and Africa. The company has also been developing manufacturing plants outside Vietnam, including in the United States, India, and plans for Indonesia.

Established in 2017, VinFast is a subsidiary of Vingroup and operates a highly automated manufacturing complex in Hai Phong, Vietnam. The company aims to drive the global electric vehicle revolution by offering high-quality products and smart services for a sustainable future.

This report is based on a press release statement.

InvestingPro Insights

VinFast Auto (NASDAQ:VFS), while gearing up for a pivotal showcase at the Montreal Electric Vehicle Show, carries a complex financial profile according to recent InvestingPro data. Despite the company's aggressive global expansion and development of new manufacturing facilities, the financial metrics suggest challenges ahead.

InvestingPro data indicates a significant revenue growth for VinFast, with the last twelve months as of Q4 2023 seeing an increase of 91.85%. This aligns with the InvestingPro Tip that analysts anticipate sales growth in the current year, reflecting optimism in the company's ability to expand its market reach with products like the VF 8 and VF 9 electric vehicle models.

However, the company's aggressive growth seems to come at a cost, with a reported gross profit margin of -46.07% over the same period, underscoring the challenges VinFast faces in maintaining profitability. This is further highlighted by the InvestingPro Tip that VinFast is quickly burning through cash, which could impact its ability to sustain operations and investments without additional funding.

The stock's performance also seems to reflect these operational challenges, with a 1-month price total return as of Day 106 of 2024 at -16.73%, and a significant 1-year price total return at -59.18%. This could be an indicator of investor sentiment towards the company's financial health and future prospects.

For readers interested in a deeper dive into the financial health and future projections for VinFast Auto, InvestingPro offers additional insights. There are 17 more InvestingPro Tips available for VinFast, which could provide valuable context for potential investors. To access these insights and more, visit https://www.investing.com/pro/VFS and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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