Vietnamese EV maker Vinfast reports $550 million Q3 loss

Vietnamese electric vehicle manufacturer VinFast reported a net loss of $550 million for the third quarter, less than the same period last year as the firm recorded an uptick in sales.

The communist state’s first homegrown car manufacturer is aiming to compete with global EV giants such as Tesla.

VinFast shares have fluctuated wildly since debuting on the Nasdaq in August 2023, at one point soaring to a market value bigger than Ford and General Motors before lurching downward.

Late Tuesday, VinFast said its third-quarter net loss was down 14.8 percent compared with last year’s July-September period, according to its unaudited financial results.

The company said it delivered almost 22,000 vehicles in the quarter, an on-year increase of 115 percent.

Revenue for the quarter stood at $511 million, an on-year jump of 49 percent.

“We expect to finish 2024 on a strong note and meet our 80,000 vehicle delivery target,” VinFast chairwoman Thuy Le said in a statement.

VinFast last year reported a net loss of $2.39 billion, up 14.7 percent from 2022.

With 173 showrooms globally, the company is trying to crack markets in Asia, the Middle East, Europe, the United States and Canada.

The company is scheduled to open factories in Subang, Indonesia and in the southern Indian state of Tamil Nadu next year.

Earlier this month, CEO Pham Nhat Vuong and parent group Vingroup said they would inject $3.5 billion in new funding into the company.

The goal is to achieve the break-even point by the end of 2026.

Vuong, Vietnam’s richest person, was appointed CEO of VinFast earlier this year. He is also chairman of parent firm Vingroup.

© 2024 AFP