Vietnam-based electric vehicle (EV) manufacturer, VinFast (NASDAQ:VFS), reported a significant second-quarter loss on Friday, with a net deficit of approximately 12.5 trillion Vietnamese dong or $514 million. These losses were generated from sales worth about 7.5 trillion dong or $307 million. This follows a net loss of $579 million in the first quarter and $560 million in the second quarter of 2022.
Despite the losses, VinFast's management maintained an optimistic forecast for the year. The company reported significant growth in EV deliveries, with 9,535 units delivered in the second quarter of 2023 - a remarkable rise from the 1,780 units in the first quarter and 1,789 units in the same period last year. Most of these deliveries were made to fleets owned by VinFast's parent company, Vingroup.
Specifically, Green and Smart Mobility, a taxi firm controlled by Vingroup, purchased over 7,000 EVs this year. In addition to EVs, VinFast also reported an increase in e-scooter deliveries for the second quarter of 2023. The company delivered 10,182 e-scooters, up from 9,757 delivered in Q1 but down from the 15,299 delivered in Q2 of 2022.
However, following the announcement of its quarterly losses early on Friday, VinFast's shares fell by 3.5% to $15.20. This occurred despite a positive trend in the broader market with both S&P 500 and Nasdaq Composite indices posting gains.
VinFast entered the U.S. public market through a merger with a special-purpose acquisition company (SPAC) in August. This merger significantly increased the number of shares available on the market and added about $150 million in cash to VinFast's balance sheet. The company now has over $2 billion available in financing from parties related to Vingroup.
The company's projections for 2023 indicate a delivery target of between 40,000 and 50,000 EVs, excluding e-scooter sales. Given that first-half EV deliveries amounted to 11,315 units, this leaves an estimated 30,000 to 40,000 EVs to be sold in the second half of the year.
Investors are keenly awaiting more details about VinFast's capital expenditure when it files its complete quarterly report. Despite a challenging week where its stock fell by about 9%, VinFast's shares are still up more than 50% from the approximately $10 level they were trading at when the SPAC merger closed. However, they remain down 83% from their record high of $93 achieved shortly after the merger.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.