VinFast Auto (VFS) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly EV deliveries of 21,912 units in Q3 2024, up 66% sequentially and 115% year-over-year, becoming the top-selling automotive brand in Vietnam for September and October 2024, with VF3 and VF5 as top-selling models.

• Delivered 44,260 electric vehicles globally in the first nine months of 2024, with strong momentum in Vietnam and expanding international presence.

• Maintains a global presence with 173 EV showrooms and 160 e-scooter showrooms/service workshops as of October 31, 2024.

• Secured $3.5 billion in new liquidity from founder and Vingroup to strengthen financial position.

Financial highlights

• Q3 2024 net revenue was $512 million, up 42% quarter-over-quarter and 49% year-over-year; 9M revenue at $1.1 billion, up 51% year-over-year.

• Gross loss narrowed to $123 million (gross margin -24%), improving from Q2's $226 million loss (margin -62.7%).

• Net loss reduced to $550 million, a 29% improvement quarter-over-quarter and 15% year-over-year; EPS at $(0.23).

• EBITDA was -$232 million (margin -45.3%), a significant improvement from Q2 and Q3 2023.

• Cash and cash equivalents at quarter-end were $79 million.

Outlook and guidance

• Reiterated 2024 delivery target of 80,000 vehicles, with 55% achieved in the first nine months and strong confidence in Q4 momentum.

• Plans to launch new models in Southeast Asia, North America, and Europe, and expand charging and distribution networks.

• Ongoing investments in new factories in India and Indonesia to support global expansion.

• Positive gross margin targeted for 2025, with more guidance to be provided at year-end.