VFS Stock Forecast & Price Target

VinFast Auto has demonstrated a strong performance in the Vietnamese market, accounting for 94% of deliveries in the first nine months of 2025 and achieving a significant 79% growth in electric vehicle (EV) sales. The company has reaffirmed its ambitious goal to double EV deliveries throughout FY25, bolstered by an expanded product line and favorable government policies promoting the electrification of two-wheelers in Vietnam. Additionally, VinFast's vehicle sales reached $662.9 million, marking a 48% year-over-year increase, with expectations of improved margins due to greater production volumes and enhanced manufacturing efficiencies.

VinFast Auto Ltd reported a significant deterioration in financial performance, highlighted by a gross margin of (56.2%), a decline from (41.1%) in the previous period and (24.0%) a year prior, which reflects ongoing challenges such as delayed revenue recognition and increased costs. The company's EBITDA of ($576.0) million and operating income of ($690.3) million not only missed prior period results but also fell short of market expectations, driven by lower gross margins and substantial R&D expenses related to new models. Furthermore, the drastic reduction in cash and cash equivalents to $349.4 million from $549.8 million signals potential liquidity issues, raising concerns about the company's financial stability amidst heavy capital expenditures and ongoing operational losses.