EV maker VinFast narrows Q3 losses, beats revenue estimates on strong demand
Technology
EV maker VinFast narrows Q3 losses, beats revenue estimates on strong demand
HANOI (Reuters) - Vietnamese electric vehicle (EV) manufacturer VinFast on Tuesday reported a smaller $550 million net loss for the third quarter compared with a year earlier, helped by lower costs for materials and ramped-up production volumes.
The Haiphong, Vietnam-based company delivered 44,773 cars in the first nine months of 2024, more than 55% of its 80,000 target for the year. About one-fifth of these deliveries were to related parties, the company said.
The company remains on track to meet its yearly goal, VinFast Chairwoman Thuy Le said.
Last month, the company reported third-quarter deliveries of 21,912 on robust domestic demand for its mid-sized cars.
"The momentum in Q3 has continued into Q4," Thuy said. "We expect to finish 2024 on a strong note and meet our 80,000 vehicle delivery target."
The automaker reported record-breaking operations in North America in September on the back of its expanding dealer network. However, it did not provide specific sales figures or details for its North American performance.
VinFast's shares rose 4.3% in Tuesday's pre-market trade on Nasdaq, trading at $4.1. Since January, the shares have fallen by more than 50%.
Third-quarter revenue jumped 42% to $511.6 million from the prior three-month period, beating estimates of $499.37 million, according to data compiled by LSEG.
VinFast said it was planning an assembly plant in India scheduled to commence operations in 2025. The company is actively expanding into Asian markets, including India, Indonesia, and the Philippines, to capitalize on the growing EV demand.
VinFast, backed by major Vietnamese conglomerate Vingroup, said earlier this month that it would receive a fresh funding round worth $3.35 billion from its founder and parent company by 2026.
