VinFast Auto (VFS) Q2 2024 earnings summary

Executive summary

• Q2 2024 EV deliveries reached 13,172 units, up 44% quarter-over-quarter and 43% year-over-year, with H1 2024 car deliveries up 101% year-over-year; e-scooter deliveries were 13,076, up 67% sequentially.

• VF 5 was the main volume driver, while the VF 3 mini e-SUV launch at ~$9,900 in Vietnam generated over 28,000 non-cancellable orders in 66 hours, with deliveries starting in Q3.

• Vietnam remains the primary growth engine, with strong consumer sentiment and majority EV market share; international expansion continued in Southeast Asia, India, and the Middle East, with 155 showrooms globally.

• Strategic delay of the North Carolina plant to 2028 to reallocate capital to India and Indonesia, optimizing CapEx.

• Dealer network contributed 23% of Q2 deliveries, reflecting a shift from direct to dealer-based distribution; EV deliveries to related parties declined to 51% of total.

Financial highlights

• Q2 2024 revenue was $357 million, up 9% year-over-year and 33% quarter-over-quarter, with H1 revenue at $626 million, up 53% year-over-year.

• Gross loss for Q2 was $224 million, with a gross margin of -62.7% to -63%, impacted by a $104 million NRV write-down.

• Q2 net loss widened to $773 million, up 27% quarter-over-quarter and 40% year-over-year; Q2 EBITDA (non-GAAP) was -$480 million.

• Operating expenses rose 28% quarter-over-quarter and 24% year-over-year, reaching $328 million in Q2.

• CapEx was $108 million, mainly for Vietnam factory upgrades and charging infrastructure.

Outlook and guidance

• FY2024 delivery target reaffirmed at 80,000 EVs, with at least 20,000 VF 3 units to be delivered in Vietnam in 2H; VF 5 remains a key contributor.

• Positive gross margin expected by 2025 and positive EBITDA margin by 2026.

• Asia projected to contribute 30%-50% of global volume in the long term.