RALEIGH – VinFast, the Vietnam-based electric vehicle manufacturer building a huge factory in Chatham County, reported a quarterly loss of $526.7 million for the three-month period ending June 30. But the company also reported a surge in revenues and vehicle sales.
Investors did not like the news. Shares fell more than 10% to $15.35in late afternoon trading.
VinFast also reported its cash reserves were $67.3 million but said it “believes that it has sufficient runway to grow in the coming years while continuing to look for opportunities to strengthen its balance sheet.”
Despite raising billions in its recent stock offering, most of the shares are controlled by billionaire founder Pham Nhat Vuong.
VinFast declined comment about fundraising plans, Bloomberg news reported.
In a report issued early Thursday, VinFast (VFS) said that losses climbed 11.2$ from the first quarter of this year as it began to ramp up EV production and shipments.
However, the April-June loss was 8.2% lower year-over-year and well before the company went public on Aug. 15, VinFast said.
Sales revenues for vehicles climbed to $314.6 million in the quarter, up more than 387% from the first quarter.
“We are pleased to report a strong second quarter marked by high growth and progress towards profitability,” said David Mansfield, VinFast’s chief financial officer, in a statement. “Our EV deliveries saw a 436% year-over-year increase, driving revenues to [$334.1 million]. In addition, growing delivery volume and operating efficiency led to an improvement in gross margin to negative 34% as we continue to work on cost control initiatives.”
VinFast broke ground for the Chatham County plant in July.
VinFast sold more than 9,500 vehicles in the second quarter – a more than 400% increase from the first quarter.
More than half of the 11,315 vehicles delivered through the first six months of 2023 were sent to Green and Smart Mobility, or GSM, which is part of VinFast corporate parent Vingroup.
Looking ahead, the company expects “deliveries of vehicles to be between 40,000 and 50,000 vehicles in FY2023.”