Vietnamese electric vehicle manufacturer VinFast reported its sixth consecutive quarterly net loss on Monday, as the company continues to scale up production and invest heavily in global expansion efforts despite mounting challenges.
The company posted a net loss of $712.4 million for the first quarter, narrowing from a $1.3 billion loss in the previous three months, but still 20% higher than the year-ago period. Analysts had expected a smaller loss of $616.3 million, according to LSEG data.
Revenue surged 150% year-on-year to $656.5 million, beating estimates of $520 million. VinFast delivered 36,330 vehicles in the quarter, marking a near 300% increase, largely due to strong domestic sales in Vietnam. The company’s shares rose 10.53% in pre-market trading following the results.
“While its VF 3 subcompact SUV is driving volumes, the company is still losing money on every car it sells,” research firm Third Bridge said in a pre-earnings note, citing high production costs and limited scale.
Backed by Vingroup (VIC.HM), Vietnam’s largest conglomerate, VinFast faces persistent headwinds from subdued consumer demand, fierce competition, and the newly imposed 25% U.S. tariff on imported EVs. The United States remains a key market for the company, though VinFast has shifted focus to Asia, with a new assembly plant in India scheduled to begin operations in July.
The company’s gross margin improved to minus 35.2% in the first quarter from minus 58.7% a year earlier. It has also reduced research and development expenses by 22.3%, though its cost of sales more than doubled during the same period.
Chair Thuy Le said on an earnings call that smaller models VF 3 and VF 5 accounted for 68% of domestic deliveries. “We set up in Indonesia and Europe already and very soon in the Middle East and the U.S.,” she said. “We are exploring opportunities in Asia and Europe with plans to offer electric buses in 6, 8, 10, and 12 meter sizes.”
VinFast plans to introduce its next-generation Limo Green platform in the third quarter, which will support future EV models in 2025. Despite ongoing losses, the company has received around $2 billion in financial support from its founder Pham Nhat Vuong and Vingroup as of May.