VinFast Auto (VFS) Q4 2024 earnings summary

Executive summary

• Delivered 97,399 EVs globally in 2024, achieving #1 market share in Vietnam and expanding rapidly in Asia, with Q4 deliveries reaching 53,139 units, up 143% quarter-over-quarter and 342% year-over-year.

• Non-Vietnam sales grew 10x year-over-year, now 10% of total deliveries, with significant expansion in Indonesia and the Philippines, and strategic MOUs to grow service networks.

• Opened three new CKD plants in Asia, set to begin operations in 2025, adding up to 300,000 vehicles per year in capacity and supporting market expansion.

• Transitioned to a dealer-focused distribution model in North America and Europe, closing D2C showrooms in California by June 2025.

• Discontinued battery leasing program as EV adoption matures, replaced with extended free charging benefits.

Financial highlights

• FY24 revenue was $1.809 billion, up 58% year-over-year; Q4 2024 revenue was $678 million, up 70% year-over-year and 34% quarter-over-quarter.

• FY24 net loss widened to $3.179 billion from $2.476 billion in FY23; Q4 2024 net loss was $1.257 billion, up 81% year-over-year.

• Q4 2024 gross margin was -79% due to a one-time $242 million free charging program charge; adjusted full-year gross margin improved to -32% from -40% in 2023.

• FY24 EBITDA (non-GAAP) loss was $1.985 billion, a 23% increase in loss year-over-year.

• Cash burn in 2024 was $1.9 billion, down 39% year-over-year; CapEx for the year was $686 million, down 32%.

Outlook and guidance

• 2025 guidance targets at least doubling 2024 deliveries, with most growth expected in Asia and flexibility to adjust based on macroeconomic conditions.

• Plans to add up to 300,000 units of capacity via new CKD facilities in Indonesia, India, and Vietnam.

• International markets expected to contribute more than 10% of deliveries in 2025.

• Planned CapEx and R&D spend for 2025 is $1.8 billion, with total cash burn expected around $2.5 billion.

• Focus on scaling volume, launching new products, and achieving full-year EBITDA profitability.