Vietnamese electric vehicle maker VinFast reports higher sequential gross loss by Reuters

(Reuters) – Vietnamese electric vehicle maker VinFast (NASDAQ: ) reported a deeper second-quarter loss on Friday, driven by rising costs related to its ambitious expansion into Asia, although its revenue remained on an upward trend, according to his stock exchange statement.

VinFast, which began delivering cars in California last year, reported a gross loss of $224 million in the April-June period, compared with a gross loss of $151 million in the previous quarter.

While revenue from expedited vehicle deliveries rose 33% quarter-on-quarter to $357.4 million, that wasn’t enough to offset higher sales and operations costs.

VinFast has been aggressively expanding into Asian markets to capitalize on growing demand for electric vehicles in those regions and to offset a weaker buying environment in the United States.

The electric vehicle maker’s gross margin was negative 62.7% in the second quarter, mainly due to a net residual value impairment charge of $104 million, compared to $5 million in the previous quarter.

However, excluding these factors, the company noted an improvement in its gross profit margin.

Deliveries in the first half of 2024 were recorded at 22,348 vehicles, an increase of 101% compared to the same period last year, with half of the deliveries being made to affiliates of the parent company.