What's Going On With Tesla's Vietnamese Competitor VinFast Stock Today?

Zinger Key Points
  • VinFast's Vingroup agrees to redeem 50% of $625 million bonds, with remaining subject to scheduled partial redemptions.
  • VinFast reports Q1 loss, but plans to deliver 100,000 EVs in FY24, showing substantial delivery growth.

VinFast Auto Ltd. VFS shares are rising on Thursday in the premarket session.

In an exchange filing, the electric vehicle operator said its parent Vingroup Joint Stock Company reached an agreement with certain institutional investors to partially redeem and amend its $625.0 million aggregate principal amount of exchangeable bonds.

Under the deal, Vingroup will redeem 50% of the Exchangeable Bonds held by each EB Investor and the remaining principal will be subject to scheduled partial redemptions. 

The amendments and partial redemption will take effect upon the satisfaction of various conditions precedent, which is anticipated to occur on or before May 17. 

The Exchangeable Bonds are scheduled to mature on May 10, 2027, the company said. According to Benzinga Pro, VFS stock has lost over 90% in the past year. 

Yesterday, VinFast reaffirmed its target to deliver 100,000 EVs in FY24. The company reported first-quarter earnings per share of $(0.26) loss, wider than the street view of $(0.22) loss

EV deliveries were 9,689 in the first quarter, representing an increase of 444% year over year and a decrease of 28% from the fourth quarter of 2023.

Total revenues were $302.6 million (consensus $450.618 million) in the first quarter, representing an increase of 269.7% year over year. Total revenues are primarily comprised of revenue from EV sales.

Read Next: Vingroup’s VinFast Faces Financial Risks Amidst Global Ambitions, With $5.7B Loss Over Past Three Years

Price Action: VFS shares are trading higher by 0.37% to $2.73 in the premarket session on Thursday.

Image Via Shutterstock

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