VinFast Relying On Battery Leasing To Catch Up With Gas Vehicles — CEO Says, 'Fee Is Even Lower Than The Cost For Gasoline'
Portfolio Pulse from Anan Ashraf
VinFast Auto (NASDAQ:VFS) CEO Le Thi Thu Thuy highlighted the company's unique battery leasing policy as a competitive advantage in the EV market. The policy allows customers to lease the battery separately, reducing the upfront cost of EVs and making them more affordable. Thuy claims this approach makes the monthly costs of owning a VinFast vehicle competitive with, or even lower than, those of gas-powered vehicles. The company, which began U.S. deliveries in March 2023, reported a Q4 EPS loss of $(0.28), wider than expected, and quarterly sales of $436.5 million. VinFast shares closed down 3.4% at $5.08.
February 23, 2024 | 6:12 am
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VinFast Auto's unique battery leasing policy aims to make EVs more affordable, potentially boosting market competitiveness. However, the company reported a Q4 EPS loss of $(0.28), wider than expected, with shares falling 3.4% to $5.08.
VinFast's innovative battery leasing policy could attract more customers by making EVs more affordable, potentially increasing sales in the long term. However, the wider-than-expected Q4 EPS loss and the immediate negative reaction in stock price indicate short-term financial challenges and investor skepticism. The impact on the stock price in the short term is neutral as the potential sales increase from the leasing policy could be offset by current financial losses and market reaction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100