VinFast Auto (VFS) Q3 2024 earnings summary

Executive summary

• Achieved record monthly and quarterly EV deliveries in Q3 2024, becoming the top-selling car brand in Vietnam for September and October, and leading the domestic EV industry.

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

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

• Maintains a global presence with 173 EV showrooms and ongoing expansion of dealer and charging networks.

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

Financial highlights

• Q3 2024 net revenue reached $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%), a significant improvement from Q2's $226 million loss (gross margin -62.7%).

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

• EBITDA improved to -$232 million (margin -45.3%), from -$484 million in Q2.

• CAPEX was $132 million, up 21% sequentially, mainly for new factory construction in India and Indonesia.

Outlook and guidance

• Confident in achieving the 80,000 vehicle delivery target for 2024, supported by strong Q3 and expected Q4 numbers.

• Preparing for continued growth in 2025, with Vietnam as the foundation and further international expansion planned, including new models and expanded charging/distribution networks.

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