VinFast Forecasts Continued EV Sales To Founder Pham Nhat Vuong's Ride Service Through 2024: Report

Vietnam-based EV maker VinFast Auto Ltd. VFS reportedly predicts electric car and scooter sales to an affiliated ride service owned by its founder, Pham Nhat Vuong, to continue into 2024. 

The company has not extended any financing or special discounts for the business, Reuters reported, citing a statement from the company's CEO, Le Thi Thu, in an interview.

Over the past two quarters, VinFast has sold about 13,000 electric cars to Green SM, a Vietnam-based taxi operator and leasing provider 95% possessed by VinFast's billionaire founder.

The sales from the Green SM business made up approximately two-thirds of VinFast's electric vehicle (EV) sales in the first two quarters following its Nasdaq listing, the report added. 

"For the next two quarters we still see Green SM having demand for our vehicles, both EVs and e-scooters," Thuy told Reuters. "That is going to continue into end of first quarter, even maybe the second quarter next year."

VinFast had previously announced that Green SM had pledged to deliver 30,000 electric cars and 200,000 electric scooters over a two-year period beginning in March of this year.

Earlier this month, VinFast announced plans to acquire a 99.8% stake in VinES Energy Solutions, or VinES, from Vuong, for approximately $462 million debt.

To support the ramp-up for VinES until its operations stabilize, Vuong agreed to provide grants to VinFast for all interest payments relating to these existing VinES borrowings up to 2027.

Price Action: VFS shares are trading lower by 0.34% to $5.95 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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