Shares of Vietnamese electric vehicle maker VinFast Auto (NASDAQ:VFS) are down in double digits today after the company’s CEO, Le Thi Thu Thuy, noted the need to tap “a lot of capital” for its geographic expansion, according to Bloomberg.
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Beginning with Indonesia, VFS is looking to rapidly expand into Southeast Asia. It is also setting up a $2 billion facility in North Carolina and has planned facilities in India and Indonesia. Thuy noted that VFS will rely on VinGroup JSC, its parent, and Founder Pham Nhat Vuong, for support over the next 18 months.
VFS aims to sell between 45,000 to 50,000 vehicles this year. In Q3, it delivered over 28,000 electric scooters and more than 10,000 cars.
Recently, VFS acquired a 99.8% stake in battery producer VinES from Vuong. Both companies are part of VinGroup and the move is expected to help VFS secure the supply of batteries, control its supply chain, and optimize its operating expenses.
VFS’ third-quarter revenue soared by 159% to $338 million, and earlier in May, Vuong noted that the EV company could reach break-even by the end of next year.
Is VFS a Good Investment?
Following its Nasdaq debut in August, VFS shares have been on a continuous decline. With today’s 11% price drop, investors have seen their holdings in VFS evaporate by nearly 59% over the past month alone. One can expect talk of significant capital raise to continue to weigh heavily on VFS shares in the short term.
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