FSR - VinFast: Financial Situation Gets Scarier
2024-02-25 05:55:46 ET
Summary
- VinFast, the Vietnamese electric vehicle company, saw its shares collapse after its SPAC merger mega-rally, and its latest results indicate further potential losses.
- The company plans to expand globally, but it likely will need a lot more capital to do so.
- VinFast reported significant losses, negative gross margins, and a weak balance sheet, while the valuation still seems stretched.
Back in August, I warned investors regarding the latest bubble in the electric vehicle craze, VinFast ( VFS ). The upstart Vietnamese company saw its shares surge to ridiculous levels after its completed SPAC merger, giving the name a valuation that was one of the largest in the automotive industry. Six months later, shares have collapsed as I thought they might, and the company's latest results show there could be even more pain to come....
VinFast: Financial Situation Gets Scarier