Electric vehicle (EV) manufacturer VinFast Auto (NASDAQ:VFS) stock may come out of left field for U.S.-based investors, especially for the reason that company hails from Vietnam. Yet, it’s publicly tradable, and now that the shares are down, American stock traders should take a better take a look at VinFast.

VinFast makes electric cars and trucks in addition to electric bikes, which will be strong sellers in densely populated regions. The EV field is kind of crowded now, so VinFast has to face out to remain competitive.

As we’ll discover, VinFast definitely stands out. At the identical time, stock traders still aren’t convinced of VinFast’s growth prospects. Still, the information suggests that this unusual EV maker is making strides in 2024 to this point.

VinFast wants you to “drive your style”

Before we get to VinFast’s operational and financial results, prospective investors should first understand that VinFast isn’t different simply because the corporate is situated in Vietnam. Indeed, VinFast’s daring, unconventional spirit is what might drive the corporate’s future growth and success.

Here’s an example of what I’m talking about. With the tagline “Drive your style,” VinFast introduced its DrgnFly model electric bike earlier this yr. The DrgnFly’s design “stands out with a V-shaped, elongated frame paying homage to the image of a flying dragon.” At the identical time, the bike also features “a large handlebar, balloon tires and an ergonomic riding position.”

Suffice it to say, you’ll get lots of attention if you happen to roll down the road on a DrgnFly e-bike. One other VinFast offering that lets you “drive your style” is the VF Wild electric pickup truck, which doesn’t look as “wild” because the name might suggest. Nonetheless, the vehicle does feature a “bed length designed to expand from 5 to eight feet,” thereby “equipping the VF Wild with the biggest bed in its segment.”

Then, there’s the VinFast VF-3 electric mini-SUV. It’s small and lovely and ideal for densely populated areas. At the identical time, the VF-3 is surprisingly practical, with a “goal estimate of driving range of over 125 miles per full charge.”

In other words, investing in VinFast isn’t only a wager on a Vietnamese EV manufacturer. It’s also a bet that these unusual vehicle concepts will catch on and that the “wow” factor will boost VinFast’s top and bottom lines in the long term.

VinFast stock plunges despite revenue acceleration

Speaking of VinFast’s top and bottom lines, the automaker just released its first-quarter 2024 operational and financial results. You is likely to be led to assume that the outcomes were abysmal since VinFast stock plunged 10% inside the first hour of today’s trading session.

Yet, I discovered nothing particularly objectionable in the outcomes. For one thing, VinFast’s Q1-2024 EV deliveries increased 444% yr over yr to 9,689 units. Moreover, the corporate’s revenue grew 270% yr over yr to $303 million. On top of all that, VinFast’s net earnings loss improved from 30 cents per share within the fourth quarter of 2023 to 26 cents per share in 2024’s first quarter.

Here’s the issue, or at the least the probable driver of today’s share-price rout. Wall Street’s analysts expected VinFast to report revenue of $429 million and a net loss of twenty-two cents per share. So, the market didn’t appreciate VinFast’s improvement for the reason that company didn’t live as much as the analysts’ consensus forecasts.

Then again, only 4 analysts on Wall Street currently cover VinFast. This makes the concept of earnings beats and misses less definitive and, one might conclude, less useful for investors.

One other notable point is that, earlier this yr, VinFast set a goal of delivering 100,000 vehicles in 2024. That’s despite the fact that VinFast delivered a complete of 34,763 vehicles in 2023.

Now, the corporate still expects to deliver 100,000 vehicles this yr. That won’t be a straightforward feat, considering VinFast only delivered 9,689 units in 2024’s first quarter.

That is where executive-level confidence will likely outstrip actual performance. Still, the immediate 10% drop in VinFast stock seems overdone. VinFast didn’t live as much as Wall Street’s standards, but those standards won’t be meaningful or actionable without delay. Subsequently, if you happen to’re on board with VinFast’s eye-catching vehicle concepts and undeniable sales acceleration, you may consider a VFS stock position that – very similar to the VF-3 mini-SUV – is small but able to haul.

Disclaimer: All investments involve risk. On no account should this text be taken as investment advice or constitute responsibility for investment gains or losses. The data on this report mustn’t be relied upon for investment decisions. All investors must conduct their very own due diligence and seek the advice of their very own investment advisors in making trading decisions.