$VinFast Auto (VFS.US)$ soared more than 10% Friday after the Vietnamese-based EV company announced that it anticipates sustained growth for the next five years and is approaching its break-even point.
VFS rose 10.2% to a $4.33 close after the firm said in a securities filing that it sees a 30x to 40x increase in U.S. sales this year, up from $6.4 million in 2023.
Further, VinFast confirmed that this growth trajectory can be sustained over the next five years.
Funded by Pham Nhat Vuong -- Vietnam's richest man -- VinFast said it is strengthening its establishment of manufacturing facilities to leverage attractive government incentives in countries like India, Indonesia, and the Philippines.
In fact, VinFast is positioning itself to compete with $Tesla (TSLA.US)$ and $Honda Motor (HMC.US)$ as it seeks entry into the U.S. electric vehicle market, Bloomberg reported.
With a net worth of $5.3 billion, Vuong remains optimistic about steering the company to success despite setbacks and challenges faced by global giants like $Toyota Motor (TM.US)$, the report read.
VinFast, which debuted its first U.S. vehicle sales last year, faces obstacles to establishing profitability as Chinese rivals escalate cheap EV exports and Tesla cuts prices amid declining electric car demand.
The company's initial U.S. rollout also faced criticism for malfunctioning features and erratic climate controls.
During a Bloomberg Television interview, Vuong was questioned about the duration of his support for the financially unprofitable venture. "Until I run out of money," Vuong told Bloomberg.
"We don't care about the current price of the stock at the moment and we are not in a rush to bring more shares to the market," Vuong said. "The free float doesn't affect big and long-term investors."
Other EV start-ups didn't fare as well on Friday.
$Canoo (GOEV.US)$ sank 17.4% to $1.80, while $Zapp Electric Vehicles (ZAPP.US)$ shed 10.7% to $2.17.