VinFast Auto Ltd. ( VFS ) reported first-quarter earnings per share of $(0.26) loss, wider than the street view of $(0.22) loss. 

EV deliveries were 9,689 in the first quarter, representing an increase of 444% year over year and a decrease of 28% from the fourth quarter of 2023.

Total revenues were $302.6 million (consensus $450.618 million) in the first quarter, representing an increase of 269.7% year over year. Total revenues are primarily comprised of revenue from EV sales.

Gross loss was $(150.8) million in the first quarter, rising 6.5% year over year. Gross margin was negative (49.8%) in the first quarter, contracting from negative (172.9%) on a year-over-year basis.

“Supportive government policies, the anticipated transition of the EV market from early to mass adoption, and the projected growth in Ex-China markets fuel our confidence,” said Madam Thuy Le, Chairwoman of VinFast. 

New Product Update

Following its launch in December 2023, the VF 7, VinFast’s C-segment EV model, commenced deliveries to initial customers in Vietnam in late March 2024, the company said in an exchange filing. The model is expected to be shipped and delivered to other markets in the same year.

The first batch of VF 9, VinFast’s E-segment EV model, is set to arrive in the U.S. in April and will be ready for deliveries between late quarter two and early quarter three of 2024.

In addition, VinFast said that the 4-seat mini eSUV, VF 3, will be on track for domestic delivery by the end of 2024.

What’s Next?

VinFast reaffirmed its target to deliver 100,000 EVs in FY24. “This is underpinned by the exponential growth of our point-of-sale channels and the introduction of new models designed to cater to a broader customer base across multiple new markets in the latter half of this year,” Le added.

However, the company cautioned that this outlook reflects the company’s current and preliminary view on the business and existing market conditions, which is subject to change.

In the Middle East, VinFast signed a dealer sales agreement to distribute electric vehicles in Oman. The inaugural store is anticipated to open in mid-2024, with vehicle sales commencing shortly after that.

Read Next: Vingroup’s VinFast Faces Financial Risks Amidst Global Ambitions, With $5.7B Loss Over Past Three Years

Price Action: VFS shares are trading higher by 1.63% to $3.12 premarket on the last check Wednesday. 

Image: Shutterstock/ betto rodrigues