VinFast’s troubles as it expands outside of its home country of Vietnam into North America have been well documented, from delayed deliveries and poor build quality, to the point where the automaker is now paying customers cash when their EV has an issue, even for issues that doesn’t require a service visit. All of these problems added up to a big financial loss for the Vietnamese automaker ahead of its initial public offering (IPO) next month.
According to a regulatory filing published on Thursday, VinFast reported a 49% drop in revenue resulting in a net loss of $598 million in the first quarter of 2023, the first full reporting period since its entry into the North American market. VinFast’s loss was worse than the $411 million loss in the same time period in 2022, a year in which it saw a loss of $2.1 billion. VinFast attributed the decline in quarterly revenue to lower selling prices and the company’s shift towards becoming a dedicated EV manufacturer. (via Reuters)
Based on a recall published in May, VinFast had sold only 111 of the 999 VF 8 SUVs it had exported into the US.
The regulatory filing also revealed the company is moving ahead with a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co. The targeted completion date for the merger is July 20. The merger is expected to value the automaker at $23 billion.
The $23 billion valuation was determined by Black Spade, which compared the company to Lucid in terms of revenue scale and shared global target market, particularly focusing on US sales. Lucid, which also went public through a SPAC in 2021, had a market capitalization of $23 billion at the time of listing but has since dropped to $13 billion.