VinFast Auto (NASDAQ:VFS) shares are ticking higher today after the Vietnamese EV maker reported Q1 numbers, managing to narrow its losses for the quarter on a sequential basis.
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Vinfast’s Promising Q1 Results
In Q1, VinFast’s top line increased by nearly 270% year-over-year to $303 million, while its net loss per share narrowed to -$0.26 from $0.30 in Q4. The company’s EV deliveries surged by 444% year-over-year to 9,689 units; however, its e-scooter deliveries declined by 32% to 6,632 units. VinFast’s new DrgnFly electric bike is slated to go on sale later this month.
Notably, VinFast’s total number of showrooms decreased by 3% sequentially to 119. Similarly, its total number of deliveries declined by 57% to 16,321 units on a sequential basis. Nonetheless, improved gross margin and lower operating expenses helped VinFast lower its EBITDA loss to $358 million from $426 million a year ago.
VFS Is Aiming for Growth
VinFast continues to aim for rapid global expansion. In Q1, the company added new dealerships in the U.S., Indonesia, and Oman. Importantly, VinFast aims to deliver 100,000 vehicles for the full year.
What Is the Future of VFS Stock?
While VinFast is gunning for a global footprint, the company’s stock price has tanked by nearly 63% over the past six months amid challenging times for the EV industry. Overall, the Street has a Moderate Buy consensus rating on VinFast, alongside an average VFS price target of $10. However, analysts’ views on the stock could see a revision following today’s earnings report.
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