VinFast Posts a Big Loss. Why the EV Start-Up’s Stock Is Rising Anyway.

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The start of Vietnam’s electric vehicle

VinFast Auto

It posted a big second-quarter loss. The guidance for the year also leaves some questions unanswered. Anyway, the stock is up.

Friday, Vinfant (symbol: VFS) reported A second-quarter net loss of nearly $514 million on sales of $307 million at current exchange rates. VinFast reports results in Vietnamese dongs. The company posted a net loss of $579 million in the first quarter and a net loss of $560 million in the second quarter of 2022.

Shares have changed significantly since the company completed its SPAC merger in August 2023. The second-quarter loss was about 22 cents.

Along with financial results, VinFast delivered 9,535 EVs in the second quarter—up from 1,780 in the first quarter, and 1,789 EVs in the second quarter of 2022.

Most of the second quarter’s volume was delivered to vessels controlled by VinFast’s parent company. A taxi company called Green and Smart Mobility, which is controlled by:

Vinggroup

(VIC.Vietnam), has purchased over 7,000 EVs by 2023.

The company delivered 10,182 e-scooters in the second quarter—down from 9,757 in the first quarter and 15,299 in the second quarter of 2022.

This is the company’s first quarter as a publicly traded company. There is no consensus or any analyst report for reference.

Investors may have expected losses. Given the size of the company, this is not surprising. Shares of VinFast were up 1.3% at $15.95 early Friday.

S&P 500
And

Nasdaq Composite
Futures rose 0.3% and 0.5%, respectively.

Looking ahead, Vinfant expects to deliver 40,000 to 50,000 “vehicles” by 2023. It is unclear as of the time of release if this number includes e-scooters. The company immediately a Baron Request for feedback. That may be a management question when dealing with a. Meeting call at 8 a.m. Eastern Time to discuss the results.

Including e-scooters, Vinfant has delivered around 31,000 vehicles by the first half of 2023. EV deliveries were 11,315 units.

At $15.95, VinFast stock is still down 9% and 83% from its record high of $93 reached shortly after the SPAC merger closed. But shares are up more than 50% from the $10 they were trading at when the merger closed.

Write to Al Root at [email protected]