MARKHAM, Ontario - VinFast Auto (NASDAQ:VFS) has started delivering its VF (NYSE:VFC) 9 electric SUV to customers in Canada, entering the full-size SUV market with its all-electric, seven-passenger vehicle. The VF 9, which features three rows and all-wheel drive, is now available across VinFast's retail network in Canada, with prices beginning at CAD 77,321 for the Eco trim and CAD 81,321 for the Plus trim.
The VF 9 measures 201.5 inches in length, 78.9 inches in width, and 66.7 inches in height, offering a spacious alternative for families looking for environmentally friendly transportation. It boasts a ground clearance of 7.2 inches and comes with an EPA-estimated range of 518 kilometers for the Eco model and 462 kilometers for the Plus model.
VinFast's Deputy CEO of Sales & Marketing in Canada, Mr. Robert Muller, expressed enthusiasm about the VF 9's launch, highlighting its suitability for large families and its premium features. The SUV is designed by Pininfarina and includes an advanced driver-assistance system (ADAS), a smart infotainment suite, and 11 airbags for enhanced safety.
The vehicle is equipped with a dual motor all-wheel drive system, a customizable 15.6-inch touchscreen, and offers increased cargo space with the absence of an internal combustion engine. Owners can also utilize the VinFast app to access a network of public charging options.
VinFast provides a comprehensive warranty and service package for the VF 9, covering 10 years or 200,000 kilometers, and includes 24/7 roadside assistance and mobile repair services. The company's customer support network in Canada features 10 showrooms and 57 certified collision centers, with plans to expand.
This news is based on a press release statement from VinFast Auto, a subsidiary of Vietnam's Vingroup JSC (HM:VIC) and a NASDAQ-listed company under the ticker VFS. VinFast is expanding its global presence, focusing on North America, Europe, and Asia, and aims to make electric vehicles accessible to a broader consumer base.
In other recent news, VinFast Auto, a Vietnamese electric vehicle manufacturer, has seen significant growth in its Q2 2024 earnings and revenue. Delivering 13,172 EVs during the quarter, the company reported a 44% rise from the previous quarter and a 33% quarter-over-quarter revenue increase to $357 million. However, despite these gains, VinFast experienced a gross loss of $224 million for the quarter, mainly due to an impairment charge on the Net Residual Value of its vehicles.
In a strategic expansion move, VinFast has entered the Middle Eastern market with the opening of its first dealership in Dubai, in partnership with Al Tayer Motors. This is part of VinFast's broader global expansion strategy, aimed at promoting sustainable and green transportation solutions. The dealership features a range of smart electric vehicles, including the VF 6, VF 7, VF 8, and VF 9 models.
Further strengthening its Middle Eastern presence, VinFast signed a Memorandum of Understanding with Charge&Go to develop a public charging station network in the UAE. VinFast plans to open additional dealerships across the Middle East, including in Saudi Arabia, Qatar, Kuwait, and Bahrain, later this year.
In other developments, Mr. Ngan Wan Sing Winston stepped down as an independent director and Audit Committee member, effective May 1, 2024. He will be replaced by Mr. Tham Chee Soon, who will serve as a member of the Compensation Committee, member of the Audit Committee, and an audit committee financial expert. These are the recent developments in VinFast's operations and board composition.
InvestingPro Insights
As VinFast Auto (NASDAQ: VFS) expands its presence in Canada with the delivery of the VF 9 electric SUV, investors should consider some key financial metrics and insights from InvestingPro.
VinFast's revenue growth has been impressive, with an 88.98% increase in the last twelve months as of Q2 2023. This aligns with the company's aggressive expansion strategy and the introduction of new models like the VF 9 in international markets. However, the company faces significant challenges in its path to profitability.
InvestingPro Tips highlight that VinFast is quickly burning through cash and may have trouble making interest payments on debt. This is particularly relevant as the company invests heavily in expanding its product line and global footprint, including the launch of the VF 9 in Canada.
The company's gross profit margin is weak, standing at -47.73% for the last twelve months. This suggests that VinFast is selling its vehicles at a loss, which is not uncommon for new entrants in the competitive EV market but raises questions about long-term sustainability.
Despite these challenges, VinFast's market capitalization of $9.35 billion indicates that investors see potential in the company's future. The stock's performance has been mixed, with a 5.82% price return over the last three months, but a significant -52.21% return year-to-date.
For investors considering VinFast, it's worth noting that InvestingPro offers 11 additional tips that could provide further insights into the company's financial health and market position. These tips could be valuable for understanding the risks and opportunities associated with investing in this emerging EV manufacturer.
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