Al Root
Shares of Vietnamese electric-vehicle maker VinFast Auto rose in early trading after the company reported better-than-expected third-quarter numbers.
Tuesday morning, VinFast reported a net loss of $550 million on sales of $512 million. Wall Street was looking for a loss of $644 million on sales of $477 million, according to FactSet.
EV deliveries hit 21,912 in the third quarter of 2024, up 66% from the second quarter of 2024, and up 115% from the third quarter of 2023.
For the third quarter of 2024, 22% of the company's EV deliveries were to related parties of the company. That's down from 52% in the second quarter of 2024.
VinFast stock was up 4.6% in premarket trading at $4.11, while S&P 500 futures were up 0.2% and Dow Jones Industrial Average futures were down 0.1%.
"The third quarter's result was underpinned by a robust September, as we recorded the highest monthly deliveries in our home market, Vietnam," said VinFast Chairwoman Madam Thuy Le in a news release. "This marks a historic milestone for Vietnam's automotive industry where, for the first time since we were established seven years ago, a domestic [auto maker] has outperformed international competitors to become the market leader across the passenger vehicle market."
VinFast still expects to deliver 80,000 EVs in 2024, implying about 36,000 units delivered in the fourth quarter.
Coming into Tuesday's trading, VinFast stock was down about 53% year to date. Slowing EV sales growth around the world has weighed on investor sentiment. Shares of EV startups have been hit relatively hard. Rivian Automotive shares were down about 51% year to date, while NIO stock was off about 49%.
Write to Al Root at allen.root@dowjones.com
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(END) Dow Jones Newswires
November 26, 2024 08:32 ET (13:32 GMT)
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