VinFast Auto Ltd. (NASDAQ:VFS) shares are trading higher on Tuesday.
The company reported a third-quarter loss per share of 23 cents, which beat the analyst consensus estimate for a loss of 28 cents. Quarterly sales of $511.6 million (+49.3%) beat the street view of $477.25 million.
The company delivered delivering 21,912 vehicles, representing a 115% year-over-year increase.
"We expect to finish 2024 on a strong note and meet our 80,000-vehicle delivery target, as the momentum in Q3 has continued into Q4," said Madam Thuy Le, Chairwoman of VinFast.
Notably, B2C deliveries experienced a considerable quarterly increase of 163%, highlighting strong market demand for VinFast's EVs.
The gross margin in the third quarter of 2024 was negative 24.0%, compared to the negative 27.0% margin in the same quarter of the previous year.
Recently, VinFast said its Founder and Chief Executive Officer, Pham Nhat Vuong, and his associated companies intend to provide up $2.1 billion in free grants to the company and its subsidiaries through the end of 2026.
In addition, Vingroup Joint Stock Company intends for it and its subsidiaries to provide VinFast's subsidiaries incorporated in Vietnam with up to $1.5 billion in loans through the end of 2026.
"Our overall liquidity position has been enhanced by the recently announced loans from Vingroup and grants from our Founder, whereby we expect to receive a potential of $3.5 billion injection by the end of 2026," said Lan Anh Nguyen, Chief Financial Officer of VinFast.
VinFast aims to meet its annual delivery target of 80,000 vehicles, driven by strong momentum in Vietnam and North America.
The company is focused on cost optimization and improving profitability while expanding its global presence.
Price Action: VFS shares are trading higher by 1.15% to $3.975 at last check Tuesday.
