VinFast’s store in Los Angeles (Reuters).
VinFast’s net loss increased to 14.1 trillion dong ($599 million) in the first quarter ahead of the Vietnamese electric vehicle maker’s attempt to list shares in the US this year.
The company expects more net and operating losses in the near term as it scales up vehicle production, establishes factories and pays for marketing, sales and service efforts. , the company said in a US regulatory filing.
Backed by Vietnam’s richest man Pham Nhat Vuong, VinFast plans to list in the US by merging with special purpose acquisition company Black Spade Acquisition Co. in the second half of this year. This deal, which will be completed before July 20, will bring VinFast an equity value of about $23 billion.
While VinFast has started to ship battery-powered cars sport utility vehicle for customers in the United States, it is entering an increasingly competitive market, with Tesla lower prices and put pressure on incumbents like Ford And common engine. VinFast forecasts sales will reach 45,000 to 50,000 this year and says it can produce electric pickup trucks, mini cars and other models, depending on market demand.
Vuong’s backing for VinFast was costly. Parent company Vingroup JSC and its affiliates and external lenders deployed about $9.3 billion in funding for the EV maker between 2017 and the end of March, according to the filing.
The company’s first quarter results compared to a net loss of VND9.7 trillion in the same period last year. Last month, Mr. Vuong said VinFast could be profitable after 2025 if operations are “smooth” and the company can break even by the end of next year.
The manufacturer also appears to have moved away from the suggested North Carolina factory production timeframe.
In March, VinFast said that production at the unbuilt facility won’t begin until 2025. It removed that time reference in its latest filing, stating only that pre-construction work on the home machine started in the 3rd quarter of last year. The plant is expected to have an initial capacity of 150,000 vehicles/year, then increase to about 250,000 vehicles/year. The company did not say when it expected to reach those capacity levels.
