VinFast (VFS) reports surprising Q2 revenue surge and profit growth on rising EV deliveries
Vietnamese EV maker VinFast (VFS) released its Q2 earnings Thursday, its first report since going public, showing 303% revenue growth from the first quarter.
VinFast revenue rises in Q2 on higher deliveries
The growth comes amid VinFast’s EV deliveries rising over 400% in Q2. VinFast delivered 9,535 electric vehicles between April and June, bringing its total to 11,315 for the first half of the year.
VinFast also delivered 10,182 e-scooters, up 4% from the previous quarter (9,757). At the end of June, VinFast had 122 EV showrooms globally in addition to 245 showrooms and service workshops for e-scooters.
With deliveries rising significantly, vehicle sales reached $314 million, up 387% from Q1. VinFast’s revenue rose over 300% in Q2, primarily from higher EV deliveries, reaching $334.1 million.
As VinFast ramps output, margins are also improving. Gross margins advanced to (-34.1%) compared to (-73.4%) in the first quarter.
VinFast’s deficit improved by 11%, with a net loss of $526.7 million. As of June 30, 2023, the EV maker had $67.3 million in cash and equivalents. The company says funds from deSPAC and investments from the chairman of Vingroup will “give us sufficient runway to grow in the coming years.”
EV delivery growth
Although electric vehicle deliveries rose 435% in Q2, driving revenue growth, the majority of VinFast’s sales were to a related party.
Of the 11K EVs delivered through the first half of the year, roughly 7,100 were to Green and Smart Mobility (GSM). GSM was established by Vingroup, VinFast’s parent company, as a green transport rental and taxi service to expand its brand in the region.
Vehicle sales to GSM accounted for around $236 million of VinFast’s $379 million in total vehicle sales through the first half of the year.
GSM has agreed to purchase up to 200,000 e-scooters and 30,000 EVs, of which 7,100 have been delivered.
VinFast shares began trading on the Nasdaq under ticker “VFS” on August 15 in an explosive debut. After a drastic rise in share prices, VinFast was worth $215 billion, more than Ford, GM, VW, and Rivian combined.
Currently, VinFast is worth around $38 billion, which is still higher than Rivian ($23B) and Lucid ($13B).
After hitting a peak of $93 per share in intraday trading, VFS shares have slipped over 80%. After the earnings release, VinFast stock is down another 3.5% in Thursday’s trading session.
The company says it’s approaching the next phase of development, which will begin in 2024. VinFast is targeting an additional 50 markets to import and distribute electric models.
VinFast reaffirmed its 2023 delivery target of 40,000 to 50,000 vehicles. In the US, VF 9 deliveries are expected to begin by the end of 2023.
VF 6 deliveries will also begin in Vietnam by the end of the year. Next year, VinFast will start rolling out the VF 7 and VF 3 models.
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The Stripe logo on a smartphone with U.S. dollar banknotes in the background.
Budrul Chukrut | SOPA Images | LightRocket via Getty Images
Stripe cut 300 jobs, representing about 3.5% of its workforce, mostly in product, engineering and operations, CNBC has confirmed.
The payments company, valued at about $70 billion in the private markets, still expects to increase headcount by 10,000 by the end of the year, which would be a 17% increase, and is “not slowing down hiring,” according to a memo to staff from Chief People Office Rob McIntosh. Business Insider reported earlier on the cuts and the memo.
A Stripe spokesperson also confirmed to CNBC that a cartoon image of a duck with text that read, “US-Non-California Duck,” was accidentally attached as a PDF to emails sent to some of the employees who were laid off. Some of the emails mistakenly provided affected employees with an incorrect termination date, the spokesperson said.
McIntosh sent a follow-up email to staffers apologizing for the “notification error” and “any confusion it caused.”
“Corrected and full notifications have since been sent to all impacted Stripes,” he wrote.
In 2022, Stripe cut roughly 1,100 jobs, or 14% of its workers, downsizing alongside most of the tech industry, as soaring inflation and rising interest rates forced companies to focus on profits over growth. The Information reported that Stripe had a few dozen layoffs in its recruiting department in 2023.
Stripe’s valuation sank from a peak of $95 billion in 2021 to $50 billion in 2023, before reportedly rebounding to $70 billion last year as part of a secondary share sale. The company ranked third on last year’s CNBC Disruptor 50 list.
In October, Stripe agreed to pay $1.1 billion for crypto startup Bridge Network, whose technology is focused on making it easy for businesses to transact using digital currencies.
Brothers Patrick and John Collison, who founded Stripe in 2010, have intentionally steered clear of the public markets and have given no indication that an offering is on the near-term horizon. Total payment volume at the company surpassed $1 trillion in 2023.
WATCH: Early Bridge investor weighs in on $1.1 billion Stripe deal
Thinking about upgrading your EV? Rivian (RIVN) launched a new promo on Tuesday, offering up to $6,000 to upgrade your R1S or R1T. Here’s how you can snag some savings.
Rivian R1S and R1T upgrade deal offers up to $6,000
Rivian delivered over 51,500 vehicles last year as the EV maker gains momentum. Although it was only slightly higher than the ~50,100 delivered in 2023, Rivian is expected to see even more growth this year.
After shutting down its Normal, IL manufacturing plant last April and renegotiating supplier contracts, Rivian has seen “significant cost improvements,” according to CEO RJ Scaringe.
Rivian also began delivering its next-gen R1S and R1T models last year. The new Large and Max battery packs have redesigned modules and more efficient packaging, “making them easier to manufacture and service.” For example, Rivian’s new EVs use seven ECUs, down from 17 in the first-generation R1T and R1S.
With new plant upgrades, reworked supplier contracts, and more efficient vehicles, Rivian is now passing the savings on to customers.
Rivian introduced a new promo on Tuesday, offering up to $6,000 to upgrade your R1T or R1S. The bonus amount varies by trim:
- Tri with Max battery: $6,000 USD / CAD 8,600
- Dual with Max battery and Performance upgrade: $4,500 USD / CAD 6,500
- Dual with Max battery: $3,000 USD / CAD 4,300
The offer is for current R1T or R1S owners or lessees in the US and Canada. Rivian launched the new promo on January 21, and it runs through March 31, 2025.
After you purchase or lease a qualifying vehicle, Rivian will apply a discount toward the MSRP. You must take delivery by March 31, 2025. In the fine print, Rivian stated, “You must request a trade-in estimate to qualify for this offer, but trade-in of a vehicle is not required.”
Any other models are excluded from the offer. These include Dual Standard configurations, Dual with Large battery configurations, custom builds, demo vehicles, and pre-owned vehicles.
The new offer follows Rivian’s previous upgrade promo introduced last October, giving qualifying gas-powered vehicle owners or lessees up to $3,000.
Check out the Rivian R1 Shop to view eligible models. You can see eligible Rivian R1S here and R1T models here.
Electrek’s Take
Rivian’s R1S was already the tenth best-selling electric vehicle in the US last year, with nearly 27,000 models sold. With more driving range and power at a lower cost, the electric SUV could see even more demand in 2025.
Then again, with the arrival of new luxury electric SUVs, like the Jeep Wagoneer S and Volvo EX90, Rivian will face more competition in the US.
Rivian’s latest promo comes as the Company looks to carry the momentum from the end of 2024 into the new year. The EV maker is offering other deals, including 1.99% APR for 60 months on the R1 Dual with a Max Battery and Performance upgrade.
Even if you are not eligible for the promo, we can still help you find deals on Rivian’s electric SUV in your area. You can use our links below to view offers on the Rivian R1S and R1T near you today.
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