Investors received new data on electric-vehicle sales from both VinFast Auto and Polestar Automotive in the third quarter. VinFast delivered a total of 10,027 EVs, indicating an increase from the 9,535 delivered in the previous quarter. Thus far, VinFast has delivered approximately 21,300 EVs in total this year. The company aims to reach a goal of 40,000 to 50,000 deliveries by the end of the year. Achieving this target would require a significant sales boost in the fourth quarter compared to the third.
Despite the complexities of the situation, VinFast's stock has seen an increase of 5.6% in premarket trading. On the other hand, S&P 500 and Nasdaq Composite futures have experienced slight declines of 0.2% and 0.1%, respectively. Given recent fluctuations and uncertainties, it is challenging to predict how the market will respond to VinFast's stock. It is worth noting that the stock has declined by approximately 90% since reaching its all-time high of $93 per share on August 28.
In addition to delivery figures, VinFast divulged its third-quarter sales projections of approximately $343 million, paired with an estimated gross loss of around $100 million. The operating loss should amount to approximately $370 million, equivalent to roughly $37,000 per EV sold. It is important to mention that VinFast also specializes in selling electric scooters.
The dynamics of the electric vehicle (EV) market continue to be a topic of debate and speculation. While it's difficult to determine whether recent developments are positive or negative, one thing is clear: there is a lack of estimates from Wall Street analysts. Both Rivian Automotive (RIVN) and Ford Motor (F) face similar challenges, with both companies experiencing losses per EV sold.
In contrast, Polestar Automotive Holding (PSNY) recently released their delivery figures, reporting 13,900 vehicles delivered in the third quarter and an impressive 41,700 in the first nine months of 2023. The company remains confident in its ability to achieve its goal of selling 60,000 to 70,000 vehicles by the end of 2023. As a result, Polestar's stock has seen a modest 2.3% increase in premarket trading.
It's worth noting that while Polestar may not be experiencing a significant surge in stock value currently, one must consider the starting point. When compared to VinFast, a peculiar contrast arises. Despite Polestar delivering more EVs, its market valuation stands at approximately $6 billion, while VinFast boasts a staggering $20 billion valuation - more than three times that of Polestar.
Determining whether this valuation ratio accurately reflects their respective positions in the market is challenging and only time will reveal the answer. However, it serves as yet another example of the volatile nature of early trading in VinFast stock. At one point, VinFast shares reached a valuation of over $210 billion, placing the company as the third most valuable auto maker globally, trailing only Tesla (TSLA) and Toyota Motor (TM).
As the electric vehicle market continues to evolve, it remains an intriguing space to watch. The future holds many uncertainties, but one thing is certain: the competition among EV manufacturers is intense, and the market valuation of each company will fluctuate in response to various factors.
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