Shares of VinFast Auto Ltd. (VFS) experienced a notable rally this week, climbing over 5% on Friday to close at $3.39, after touching an intraday high of $3.41. This performance concluded a five-session advance that saw the stock gain 18.5% over the week, a move that stood in contrast to declines seen among other major electric vehicle manufacturers like Tesla Inc. (TSLA), Rivian Automotive Inc. (RIVN), and Nio Inc. (NIO).
Preliminary 2025 Results Fuel Optimism
The upward momentum followed the company's release of preliminary financial figures for the full year 2025 on March 16. According to the data, VinFast's electric vehicle shipments reached 196,919 units, more than double the volume from the prior year. This surge in deliveries propelled a 105.4% increase in annual revenue. A notable development highlighted by the company was that approximately 18% of its fourth-quarter deliveries were made to international customers outside of Vietnam, marking a step in its global expansion efforts.
Persistent Challenges and Strategic Focus
Despite the delivery growth, VinFast continues to face significant hurdles in establishing a strong presence beyond its domestic market. The competitive landscapes in North America and other international regions have proven difficult to penetrate, with sales growth in these areas lagging. The company has previously stated an ambition to deliver 300,000 EVs in 2026, a target that underscores its growth aspirations but also highlights the scale of the challenge ahead.
Company leadership remains focused on a clear path. Chairwoman Thuy Le emphasized that "scale and unit cost optimization" are the central pillars of VinFast's strategy to achieve profitability. Chief Financial Officer Lan Anh Nguyen characterized the fourth quarter as the firm's strongest financial period to date.
Deepening Losses and Margin Pressure
Beneath the headline delivery numbers, the preliminary fourth-quarter figures reveal ongoing financial strain. The company's net loss expanded to roughly $1.4 billion. Furthermore, its gross margin remained deeply negative at -39.9%, indicating that the revenue from vehicle sales is not yet sufficient to cover the direct costs of production before accounting for operating expenses. The quarter also included a substantial $235.6 million impairment charge related to the book value of its delayed manufacturing facility in North Carolina.
Affiliated Sales and Liquidity Position
A significant portion of the quarter's deliveries—about 33%—went to affiliated entities. VinFast attributed this increase to higher shipments to subsidiaries of GSM in Indonesia and the Philippines, which were completed ahead of planned fleet deployments scheduled for 2026. On the liquidity front, the company reported having access to up to $3.1 billion in funding at the end of the year. This capital is sourced from cash on hand, a credit facility from its parent conglomerate Vingroup, grants from its founder, and a standby share-sale arrangement.
Analyst Caution and Future Milestones
Some industry analysts express continued caution. Ollie Coughlin of Third Bridge pointed to VinFast's "high cash burn rate," which he suggests creates uncertainty regarding how the automaker will finance new factory construction and increased operational spending. Recent reports indicate the company still aims for a soft launch of its North Carolina plant in 2028, following construction delays.
VinFast has labeled the March 16 figures as preliminary, noting they are subject to change before the official filing of its audited annual report, which is expected by April 30. This filing represents the next critical update for investors, who will be scrutinizing the finalized 2025 results, detailed cash flow statements, and more concrete guidance on the pathway to its 300,000-vehicle annual target.
The divergent signals—strong delivery growth paired with mounting losses—encapsulate the volatile and capital-intensive nature of the EV start-up landscape. While the weekly stock rally reflects investor optimism around scaling operations, the upcoming audited report will provide a clearer picture of VinFast's financial health and its ability to navigate the costly journey toward sustainable profitability in a fiercely competitive global market.
