Tesla's Vietnamese Rival VinFast Expands In Europe To Boost Aftersales Service; Analysts Lower Forecast Flagging EV Demand Slump
Portfolio Pulse from Nabaparna Bhattacharya
VinFast Auto Ltd. (NASDAQ:VFS) shares dropped after announcing a partnership with Mobivia to expand aftersales service in Europe, despite a 444% increase in EV deliveries year over year. Analysts at Cantor Fitzgerald lowered their price forecast for VFS to $8 from $9, citing a slump in EV demand. They also reduced FY24 revenue estimates to $2.4 billion from $2.6 billion and adjusted FY24 gross margin projections. The company continues to expand its dealership network globally.
April 19, 2024 | 4:31 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
VinFast's partnership with Mobivia aims to enhance aftersales service in Europe, but shares fell as analysts lowered price forecasts due to an EV demand slump.
The partnership with Mobivia is a positive development for VinFast, aiming to boost customer confidence in Europe. However, the lowered price forecast by analysts due to concerns over a slump in EV demand overshadows this news, leading to a negative short-term impact on VFS shares. The adjustments in revenue and margin forecasts further contribute to the negative outlook.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100