In its first results after its blockbuster debut last month, Vietnamese electric vehicle producer VinFast said Thursday that second-quarter sales more than doubled due to increasing domestic deliveries.
On its Nasdaq debut, the loss-making startup was valued at $85 billion, greater than Ford (F.N.) and General Motors (GM.N), upping the stakes for international growth.
Pre-bell trade saw the company’s shares fall 1%. Their value has dropped 54% since trading began on Aug. 15 after the merger with a blank-check company.
Most revenue increase has come from E.V. sales to Vingroup entities, especially Green and Smart Mobility.
A poor market debut has hampered U.S. deliveries.
VinFast recalled the first batch of U.S. autos shipped in May after regulators issued a safety warning.
We don’t expect U.S. sales to improve soon. “The VF9 won’t fix the VF8’s reputational damage,” said Third Bridge analyst David Byrne.
In the U.S., VinFast only sells the VF8 SUV and shipped 2,100 EVs early this year.
The second quarter ended June 30, net loss fell to 12.54 trillion Vietnamese dong from 13.65 trillion a year earlier.
CEO Thuy Le told analysts on an earnings call that VinFast will be profitable in a “couple of years”. According to chairman Pham Nhat Vuong, Vietnam’s richest man, the company should break even next year.
Company revenue rose 131.2% to 7.95 trillion Vietnamese dongs ($327 million).
