VinFast Reports Strong Revenue Growth in Q3

VinFast Auto Ltd., a Vietnam-based electric vehicle (EV) maker, recorded impressive revenue growth in the third quarter of this year. The company reported that its sales of EVs surpassed 10,000 units during the quarter, contributing to a total revenue of VND8,254,306 million ($342.7 million). This figure represents a remarkable increase of 159% compared to the same period last year. The majority of the revenue was generated from EV sales, although VinFast also manufactures electric scooters.

Despite the positive revenue results, VinFast faced increased losses during the quarter. The company reported a net loss of VND15,003,845 million ($623 million), which was approximately 34% higher than the losses incurred in the third quarter of 2022. It is important to note that these figures are unaudited, according to VinFast.

Looking ahead, VinFast aims to expand its presence in the U.S. market by partnering with dealerships to make its cars more widely available across the country. As of September 30th, the company had secured letters of intent from 27 auto dealers across 12 states, including popular locations such as Florida, New Jersey, and Texas.

When VinFast made its debut on the Nasdaq exchange, its share price skyrocketed, significantly surpassing the valuations of major U.S. automakers like Ford Motor Co. and General Motors Co. However, the stock’s performance has since declined, currently trading around $8 per share, well below its initial public offering price of $22. Year-to-date, the stock has experienced an 18% decrease, in contrast to the S&P 500 index, which has seen a 10% gain.

It is crucial to note that VinFast’s shares are predominantly owned by Vingroup’s chairman and VinFast founder Pham Nhat Vuong, with approximately 99% of shares under his control. This limited availability of shares for trading contributes to the stock’s volatility.