VinFast, the electric vehicle (EV) manufacturer in Vietnam, has reported a significant decline in revenue for the first quarter of this year. The company’s revenue dropped by 49%, while its net loss widened to $598 million. This is the first full reporting period since VinFast started exporting its vehicles to the United States.
VinFast disclosed these figures in a filing with U.S. securities regulators on Thursday. The company is currently in the process of merging with a blank-check company, which is expected to value VinFast at $23 billion. The net loss for the first quarter of this year is higher than the loss of $411 million incurred during the same period last year. In 2022, VinFast faced a loss of $2.1 billion.
The decline in quarterly revenue, which amounted to nearly $84 million, can be attributed to lower selling prices and VinFast’s transition from internal combustion vehicles to being a dedicated EV manufacturer.
Earlier, VinFast had filed for a U.S. initial public offering but later decided to go public through a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. The merger is expected to be completed by July 20, as mentioned in the recent filing.
Black Spade determined VinFast’s valuation by comparing it to Lucid, another EV manufacturer. Both companies have similar revenue scales and target the global market, with a focus on U.S. sales. Lucid went public in 2021 through a SPAC, and its market capitalization was valued at $23 billion during its listing but has since decreased to $13 billion.
VinFast faces tough competition from established rivals, particularly Tesla, as they introduce a wide range of new EVs to the market. This is happening at a time when the global economy is experiencing a downturn.
Pham Nhat Vuong, the founder of VinFast and Vietnam’s richest individual, recently expressed optimism to Vingroup shareholders that the company could break even by the end of 2024. VinFast aims to sell up to 50,000 units this year, which would be a significant increase compared to 2022. The company is expanding its exports to North America and will soon begin shipping vehicles to Europe. VinFast started its operations in 2019 and currently has a manufacturing plant in Vietnam, with plans for a second plant in North Carolina.
In terms of deliveries, VinFast has already shipped around 3,000 EVs to North America and plans to deliver the extended-range version of its VF 8 SUV to customers later this month. Despite the recent financial challenges, the company remains committed to its goal of becoming a major player in the global EV market.
