Stock Price & Analysis

Analysis and Insights

To determine whether it’s a good time to buy or sell VFS stock, we need to analyze both the positive developments and the challenges VinFast is facing.

Positive Developments:

1. Investment Agreement: VinFast has signed a memorandum of understanding with JTA Investment Qatar for a potential $1 billion investment. This could provide the necessary capital to support their aggressive expansion plans, both domestically and internationally.

2. Sales Growth: VinFast reported a 192% increase in global EV sales, delivering 97,399 units in 2024. This significant growth indicates strong demand in their primary markets, particularly in Vietnam.

3. Expansion Plans: VinFast is planning to expand its manufacturing capacity and enter new markets such as India and Indonesia. This could diversify their revenue streams and reduce dependence on the Vietnamese market.

Challenges:

1. U.S. Market Struggles: Despite entering the U.S. market in March 2023, VinFast has struggled to attract buyers. The company recalled 999 vehicles due to safety concerns and delayed the launch of its North Carolina factory until 2028.

2. Financial Challenges: VinFast has incurred significant losses, with the founder investing over $13.5 billion into the company as of October 2023. The company’s high capital burn rate raises concerns about its ability to achieve profitability in the near term.

3. Competition: The electric vehicle market is highly competitive, with established players like Tesla and emerging competitors. VinFast’s ability to differentiate itself and capture market share will be crucial for long-term success.

Technical Analysis:

The stock’s RSI is currently at 26.36, indicating that it may be oversold. This could present a potential buying opportunity if the trend reverses. However, the stock price has been under pressure due to the challenges mentioned above.

Valuation Analysis:

VinFast’s valuation metrics show that the stock is trading at a significant discount compared to its peers. However, the company’s high capital burn rate and lack of profitability make it difficult to justify a higher valuation.

Analyst Sentiment:

Analysts have mixed opinions about VinFast’s prospects. While some see the company as a promising player in the EV market, others are concerned about its ability to scale production and achieve profitability.

Conclusion:

Given the current challenges and the high-risk profile, it may be prudent to hold or sell VFS stock until there is clearer evidence of progress in the U.S. market and improved financial performance. However, long-term investors who are willing to take on higher risk may still find VinFast’s growth potential attractive.

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Price Prediction for VFS Stock in 2025

The price prediction for VFS stock in 2025 is expected to range between $4.20 and $2.90.

• Upper Target ($4.20): This level aligns with the Fibonacci resistance level of $4.05 and potential positive momentum from the $1 billion investment deal with JTA Investment Qatar, which could enhance investor confidence and drive expansion.
• Lower Target ($2.90): Reflects the stock's current oversold conditions (RSI < 30) and potential challenges in scaling production and achieving profitability.

This prediction considers both technical factors and fundamental risks, such as VinFast's high operating losses and struggles in the U.S. market.

The S1 support level for VFS Stock is $3.03 ,The R1 resistant level for VFS Stock is $3.59.

As of the end of day on 2025-03-17, the price of VFS Stock was $3.28.

The market cap of VFS is $7.7B.

Analysis and Insights

Valuation Metrics:

• Negative Earnings: VinFast reported negative net income and EPS, indicating significant losses and poor profitability.
• High Valuation: The price-to-sales (PS) ratio is elevated, suggesting the stock may be overpriced relative to its revenue.

Financial Health:

• Negative Margins: The company has negative gross, operating, and net margins, signaling poor operational efficiency.
• High Debt: VinFast has a negative debt-to-equity ratio, pointing to a risky capital structure.

Recent News:

• Investment Deal: VinFast signed a $1 billion investment MOU with JTA Investment Qatar, which is positive but hasn't yet finalized.
• U.S. Market Struggles: Despite global sales growth, VinFast faces challenges in the U.S., including low sales and a delayed factory launch.

Stock Performance:

• Current Price: VFS is trading at $3.22, reflecting market optimism but not backed by strong fundamentals.

Conclusion:

VinFast's negative financials, high valuation, and U.S. market struggles suggest the stock is overvalued. While the investment deal is promising, the company's profitability issues and high debt levels are significant concerns.

VinFast Auto Ltd. is an automotive manufacturer. The Company manufactures and exports a portfolio of electric SUVs, e-scooters and e-buses across Vietnam, and the United States. It offers a full-scale mobility platform focused primarily on designing and manufacturing EVs, e-scooters and e-buses. The Company's designs feature its signature lighting that frames its V logo and sweeps out to the corners of the car. The EV platform consists of models, such as VF e34, VF 8, VF 9, VF 5, VF 6, VF 7, and VF 3. The Company offers two trims of the VF 8: Eco and Plus. The Eco trim offers a longer driving range. The Plus trim offers luxury features, including a panoramic glass roof, leather upholstery, a power-assisted tailgate, and captain’s chairs for the second row. The VF 9 is an advanced E-segment electric SUV featuring three rows of seats for the Vietnam, North America, and European markets. The Company’s VF e34 is an EV offering for the C-segment electric SUV entirely for the Vietnam market.

VFS stock is predicted to reach $16 by 2030, driven by VinFast's aggressive expansion plans and strong EV demand growth. The company's capacity expansion to 850,000 units by 2028 and strategic market targeting position it for significant growth.

VFS has a total of 13953 employees.