Investors were provided with the latest electric-vehicle (EV) data on Thursday, as VinFast Auto and Polestar Automotive reported their third-quarter delivery figures. VinFast also offered insight into its third-quarter results. Despite some confusion regarding the amounts, both stocks have seen an increase.
VinFast (Ticker: VFS) announced that it delivered 10,027 EVs in the third quarter, compared to 9,535 in the second quarter. Year to date, the company has successfully delivered approximately 21,300 EVs. To achieve its projected annual target of 40,000 to 50,000 deliveries, VinFast will need to double its sales and surpass expectations in the fourth quarter, aligning with its guidance.
Shares have experienced a positive trajectory, rising by 5.6% in premarket trading and ultimately settling at a 1.1% increase to $8.14 by 10:14 a.m. Meanwhile, the S&P 500 and Nasdaq Composite have experienced slight declines of 0.4% and 0.7% respectively. The prediction of VinFast stock reactions is inherently challenging. Remarkably, the stock has declined by approximately 90% from its intraday high of $93 per share, which was recorded on August 28.
In addition to the delivery figures, VinFast anticipates third-quarter sales of $343 million and a gross loss of around $100 million. Furthermore, it expects an operating loss of roughly $370 million, equivalent to approximately $37,000 per EV sold. (It is worth noting that VinFast also offers electric scooters.)
EV Companies Polestar and VinFast Experience Contrasting Fortunes
As the electric vehicle (EV) market continues to gain traction, two major players, Polestar Automotive Holding (PSNY) and VinFast, have taken center stage. However, the performance of these companies couldn’t be more different.
Polestar Automotive Holding recently released its delivery figures for the third quarter, with 13,900 vehicles delivered. This brings the total for the first nine months of 2023 to 41,700 units. The company remains on track to achieve its target of selling 60,000 to 70,000 vehicles by the end of the year. Despite this positive news, its stock experienced a 2.2% decline.
Comparing Polestar to VinFast reveals an interesting discrepancy. Though Polestar delivers more EVs, its stock is valued at around $6 billion, whereas VinFast boasts a staggering market value of $20 billion. This threefold difference in valuation raises questions about the accuracy of these figures.
The seemingly inflated value of VinFast stock becomes apparent when considering that the company’s shares have plummeted a shocking 90% in recent times. In contrast, Polestar’s stock has only experienced a modest decline of around 30%. These fluctuations highlight the unpredictable and volatile nature of early trading in the automotive industry.
At one point, VinFast’s stock was valued at over $210 billion when priced at $93 per share. This made it the third most valuable auto manufacturer globally, trailing behind established giants such as Tesla ($TSLA) and Toyota Motor ($TM). Whether this valuation accurately reflects VinFast’s market worth remains uncertain. Only time will tell if it proves to be justified.
In conclusion, as the EV market landscape continues to evolve, the fortunes of major players like Polestar and VinFast demonstrate the challenges and uncertainties faced in this industry. The discrepancy in valuation and the wild fluctuations in stock prices underscore the need for vigilance and careful consideration when investing in these companies.