VinFast Auto Ltd (NASDAQ:VFS) stock was seen trading higher in the pre-market on Thursday, boosted by recent electric vehicle launches and the company’s initiatives to diversify its revenue stream.
Missed Delivery Target
The Vietnamese electric vehicle (EV) manufacturer, fell short of its 2023 delivery target. The company delivered nearly 35,000 cars, below its target of 40,000 cars. That’s despite the company recording a 35% increase in Q4 deliveries over the previous quarter, as reported by Reuters.
Deputy CEO Tran Mai Hoa acknowledged the slow EV adoption in certain regions affecting deliveries. Other reasons include intense competition, and economic uncertainties.
Also Read: Vietnamese EV Maker VinFast Founder Pham Nhat Vuong Takes Helm As CEO In Leadership Overhaul
Revenue Concentration Risk Being Mitigated
Revenue concentration is the key risk facing VinFast’s business right now. Although a sales breakdown wasn’t provided, about 60% of Q2 and Q3 deliveries went to VinFast’s affiliate Green SM, a Vietnam-based taxi operator and leasing provider mostly owned by VinFast’s CEO, Pham Nhat Vuong.
To this end, the company has already started diversifying sales beyond the Vietnamese border.
VinFast, which commenced the delivery of its VF 8 sport utility vehicle (SUV) in California in March 2023, recently announced intentions to establish manufacturing and battery facilities in India.
At CES 2024, VinFast revealed its latest electric vehicle concept and the mini eSUV VF 3, expanding its EV lineup and emphasizing a dedication to sustainable mobility. The showcase includes the all-electric VF 9 full-size SUV, featuring a new streaming service for an immersive in-car experience. Additionally, VinFast introduces its electric bikes, DrgnFly.
Pursuant to the event, the company announced that it has officially signed agreements with five dealers in four states across the U.S. These dealers will initially begin selling the VinFast VF 8 all-electric SUV, with plans to add the VF 6, VF 7, and VF 9 models when they launch in the U.S. market.
The company also plans to expand operations in the Middle East, Latin America, and Asia.
Risks That Remain
The company, yet to turn a profit, entered the EV market amid competitive pricing pressure created by established EV makers such as Tesla and…
Click Here to Read the Full Original Article at Cryptocurrencies Feed…
