Vietnamese electric vehicle start-up VinFast reported impressive delivery growth for 2023, but the numbers fell short of its own guidance. Despite this, the stock performance remained modest.
Vietnamese electric vehicle start-up VinFast reported impressive delivery growth for 2023, but the numbers fell short of its own guidance.
VinFast announced fourth-quarter deliveries of 13,513 units, a solid number considering its previous lifetime deliveries of only about 7,500 units. However, the company missed its own guidance of delivering between 40,000 and 50,000 EVs in 2023, by roughly 5,000 units.
Despite this, the stock performance on Thursday was relatively modest. VinFast shares fell 2.5% in midday trading to $5.62 per share while the S&P 500 and Nasdaq Composite rose 0.5% and 1.2% respectively.
Fourth-quarter sales rose about 35% compared with the third quarter, with full-year sales reaching 34,855 units - a significant increase of approximately 400% year over year.
Tran Mai Hoa, VinFast’s deputy CEO of sales and marketing, stated that although the fourth quarter saw a jump in vehicle deliveries, economic headwinds and slow EV adoption rates in certain regions adversely affected the company's delivery plan.
VinFast shares are known for their volatility. The stock traded as high as $93 in August and as low as $4.59 in October. Since VinFast completed its merger with a special purpose acquisition company in August, the daily average move for the shares has been about 10%, either up or down.
One notable aspect of VinFast among Asian EV start-ups is that it sells cars in the U.S., unlike companies such as Li Auto, XPeng, and NIO. In its first year of selling cars in the U.S., VinFast sold 3,129 units.
VinFast will report full fourth-quarter financial results on Feb. 22. Analysts and investors will be eagerly awaiting the company's forecast for 2024, as well as an explanation for the delivery guidance miss in 2023.
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