VinFast Hits Roadblock: Fails To Meet Q2 Earnings And Sales Expectations, Cautions On Challenging Macro EV Outlook

VinFast Auto Ltd. VFS shares are trading lower in the morning session on Friday.

The company reported a second-quarter loss per share of 33 cents, missing the street view of a 21-cent loss. Quarterly sales of $357.4 million missed the analyst consensus of $460.09 million.

“We have acknowledged some headwinds and uncertainties adversely challenging EV outlook at this point of time in some markets..,” said Thuy Le, Chairwoman of VinFast. 

EV deliveries were 13,172 in the second quarter, representing an increase of 43% year over year.

E-scooter deliveries were 13,076 in the second quarter, representing an increase of 28% year over year.

As of August 31, the company had 155 showrooms globally for EVs and 180 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.

The company made a strategic decision to adjust the operational timeline for the North Carolina plant to 2028 to allow VinFast to optimize resources to focus on achieving near-term growth targets.

“With the delivery of VF 3 starting in Q3, we have completed the development of all 7 e-SUV models, besides a comprehensive portfolio of 9 e-scooters, e-bus and e-bike,” Le added.

The company held cash and equivalents of $98.2 million as of June.

Outlook: The company reaffirmed its FY2024 target to deliver 80,000 electric vehicles (EVs).

Lan Anh Nguyen, Chief Financial Officer of VinFast, said, “One key driver for us in Q2 growth was the increased reception of customers for VinFast's EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility…At the same time, we continue to focus on cost optimization and stringent capital allocation while maintaining a level of flexibility in our capex plans and continuing to grow our top line.”

Price Action: VFS shares are trading lower by 3.79% to $3.81 at last check Friday.

Image via Shutterstock

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