VinFast Auto: Delivery Surge Meets Cash Flow Headwinds

Pacifica Yield13.74K FollowersFollow5ShareSavePlay(6min)CommentsSummaryVinFast Auto saw incredible growth in deliveries of its EVs and two-wheeled products, with third-quarter revenue growing by 46.8% year-over-year.The company's negative gross profit margin deteriorated sequentially to -56.2%, with its net loss at $953 million. This was around 133% of revenue.Liquidity at $3.7 billion at the end of the third quarter provides a cash runway of just over 8 months against existing cash burn. This comes as EV competition grows. Victor Golmer/iStock Editorial via Getty Images VinFast Auto's (VFS) delivery surge masks what have been consistent quarters of unprofitability and negative free cash flow in a global EV environment where price wars sparked by an explosion of ChineseThis article was written byPacifica Yield13.74K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.