Vietnamese electric vehicle start-up VinFast Auto has reported a significant loss for the second quarter of the year, accompanied by impressive delivery figures. While there are still some lingering questions, the company’s stock has risen despite the financial setback.
In terms of financials, VinFast recorded a net loss of approximately $514 million in Q2, with sales totaling $307 million. It is worth noting that the company reports its results in Vietnamese dongs. This follows a $579 million net loss in Q1 and a $560 million loss in Q2 of 2022. Despite these losses, the company just completed its SPAC merger in August 2022, leading to significant changes in outstanding shares. The Q2 loss translates to approximately 22 cents per share.
On the delivery front, VinFast saw a substantial increase in EV deliveries, with a total of 9,535 units sold in Q2. This is a steep rise from the 1,780 units delivered in Q1 and the 1,789 units in Q2 of the previous year.
It is important to note that a majority of the second-quarter volume was delivered to fleets controlled by VinFast’s parent company. Green and Smart Mobility, a taxi company owned by Vingroup (VIC.Vietnam), purchased over 7,000 EVs in 2023.
In addition to EVs, VinFast also made strides in the e-scooter market, delivering 10,182 units in Q2. While this indicates growth from the previous quarter’s figure of 9,757 units, it represents a slight decline compared to the 15,299 e-scooters delivered in Q2 of 2022.
Overall, VinFast Auto’s Q2 performance displays a loss in financial terms but strong delivery numbers. Despite the unanswered questions surrounding the full-year outlook, the company’s stock has shown resilience.
VinFast’s First Quarter as a Publicly Traded Company
VinFast, the automotive manufacturer, has completed its first quarter as a publicly traded company. As this is their initial quarter, there are no consensus estimates or analyst reports available to reference.
Despite the expectation of a loss due to the company’s size, VinFast shares experienced a slight increase of approximately 1.3% during early trading on Friday, reaching $15.95. It is worth noting that S&P 500 and Nasdaq Composite futures also saw positive gains, with increases of 0.3% and 0.5% respectively.
Looking ahead, VinFast has set its sights on delivering between 40,000 and 50,000 vehicles in 2023. However, it remains uncertain whether this figure includes e-scooters. The company has not yet responded to requests for comment, but further clarification may be provided in a conference call scheduled for 8 a.m. Eastern time.
The total number of vehicles delivered by VinFast in the first half of 2023 amounted to approximately 31,000, with EV deliveries accounting for 11,315 units.
Despite the recent increase during early trading on Friday, VinFast stock is still down by approximately 9% for the week and a staggering 83% from its record high of $93 following the completion of the SPAC merger. Nonetheless, the shares have shown positive movement, with an increase of over 50% from the initial trading price of around $10 at the time of the merger.