Nasdaq-listed Vietnamese EV maker VinFast earned $511.6 million in revenue in Q3 2024, up 49.3% year-on-year, resulting in an improvement in its path to profitability.
The company’s gross loss in the quarter reached $122.8 million, representing a 45.6% decrease from Q2 2024. The gross margin was -24%, compared to -62.7% in the previous quarter and -27% in Q3 2023.
Net loss declined 14.8% year-on-year to $550 million.
VinFast said earlier that it aimed to reach break-even and balanced cash flow by 2026.
“Increasing scale, ongoing BOM and production cost optimization, and improved operating efficiencies have already started to have a positive impact on gross margin and will continue to be key drivers for our path to profitability,” said Lan Anh Nguyen, Chief Financial Officer of VinFast.
In Q3 2024, the company delivered more than 21,900 vehicles, growing 115% compared to the same period last year. As a result, it outperformed international competitors in the Vietnam market in terms of passenger car sales.
“We expect to finish 2024 on a strong note and meet our 80,000-vehicle delivery target, as the momentum in Q3 has continued into Q4,” said Thuy Le, Chairwoman of VinFast.
The automaker has recently received significant funding commitment from its billionaire founder Pham Nhat Vuong, who pledged to pump $2.1 billion into the company through the end of 2026. Vuong’s business behemoth Vingroup will also inject $1.5 billion in loans during the same period.
DealStreetAsia reported last month that a consortium of investors led by Abu Dhabi’s driver training and road safety institute Emirates Driving Company will invest at least $1 billion in VinFast as the company recently launched in the Middle East.
VinFast said it will build a new factory in central Vietnam next month, with a targeted capacity of 300,000 EVs per year when it commences operations in 2025.
While Vietnam and North America remain VinFast’s key markets, the firm has recently started delivering its vehicles in Indonesia, while opening reservations in the Philippines.
It has also started an Indian plant, with an annual capacity of 50,000 vehicles, which is scheduled to begin operations in 2025.
