Receive free VinFast LLC updates
We’ll send you a myFT Daily Digest email rounding up the latest VinFast LLC news every morning.
VinFast, the newly listed Vietnamese carmaker that was briefly worth more than Volkswagen and General Motors, has lost more than $1.4bn this year, despite increasing shipments of electric vehicles.
In its first trading quarter since its stock market listing in August, the start-up said it lost $623mn in the three months to September, even though it shipped 10,027 cars.
The company aims to sell up to 50,000 cars this year, despite shipping a total of only 21,000 in the first nine months.
It does not break out how many cars were shipped internationally, and how many were sold in its home market. It said it had “started to see” sales increases in North America.
Revenues in the three months to September were $342.7mn, more than double the same figure a year earlier but only 3 per cent higher than the previous three months.
VinFast’s ambitions to become Vietnam’s answer to Tesla have hit setbacks amid a slate of dire reviews for its first US model, and the need for additional funding.
Owner Pham Nhat Vuong, Vietnam’s richest man, earlier this year pledged to provide $2.5bn to the company through grants and loans to help the business increase production.
VinFast expects to receive $1.2bn from its owner and major shareholders in the next six months, it said on Thursday.
The company previously disclosed that it is heavily reliant on vehicle sales to Green and Smart Mobility (GSM), a Vietnamese taxi company that is controlled by the carmaker’s parent Vingroup.
On Thursday, VinFast said it is still pushing ahead with its global expansion with factories in India and Indonesia.
The company is also looking at “cost-cutting measures,” said chief financial officer David Mansfield.
He said there is a “strong momentum in our business, supported by growing delivery volumes, increased revenues, and an improved path to profitability”.
The company “will continue to look for opportunities to strengthen our strong balance sheet”, he added.
The company only made its first car in 2019 before pivoting to electric vehicles in 2021 and its speed of vehicle development has been faster than even the quickest in the industry.
VinFast became an instant sensation when it listed in the US in August through a merger with a special purpose acquisition company.
More than 99 per cent of the company is controlled by its billionaire founder.
The small amount of shares publicly traded subject the stock to wild swings in its share price and at one point the south-east Asian company had a valuation north of $200bn, more than most established automotive companies.
The company received $240mn from the Spac deal, it said.
VinFast shares have since fallen, and this week dropped below $10 — a nearly 90 per cent decline from a high of $82 in late August.
Even after the drop, the company is still valued at $19bn, making it more valuable than Nissan, Renault or Volvo Cars.
Read the full article here