VinFast's quarterly loss widens on hefty spending

Core Insights - VinFast reported a significant increase in net loss for the third quarter, amounting to 24 trillion dong ($910.85 million), compared to 13.25 trillion dong in the same period last year, indicating challenges in its expansion strategy amid intense competition [3] - The company's shares fell by 12% following the earnings report, reflecting investor concerns over its financial performance and growth strategy [1] Financial Performance - The total revenue for the quarter reached 18.1 trillion dong, representing a nearly 47% increase from the previous year [5] - The quarterly gross margin was negative 56.2%, worsening from negative 24% a year ago, primarily due to higher warranty provisions and costs associated with vehicles sold [4] Strategic Initiatives - VinFast secured two loan facilities totaling $250 million to support its ambitious growth strategy and international expansion, despite facing tariff pressures and subdued demand in the U.S. market [2] - The company is shifting its focus from the U.S. and Europe to other Asian markets, particularly India, where it launched a factory earlier this year, aiming to increase vehicle sales from international locations [3][5] Market Challenges - VinFast faces significant competition from established players like Tesla and Chinese electric vehicle manufacturers, with its premium pricing strategy posing a major hurdle [3] - The company is transitioning to a dealership-based model and optimizing its supply chain to cut costs amid ongoing financial losses [2]