VinFast Auto Ltd. (NASDAQ:VFS) shares are trading higher after the company announced that it anticipates sustained growth for the next five years and is approaching its break-even point.
In an exchange filing, the Vietnamese electric vehicle startup said it sees a 30x to 40x increase in sales in the U.S. market this year, over $6.4 million in 2023.
Further, VinFast confirmed that this growth trajectory can be sustained over the next five years.
Funded by Vietnam's richest man, Pham Nhat Vuong, VinFast said it is strengthening its establishment of manufacturing facilities to leverage attractive government incentives in countries like India, Indonesia, and the Philippines.
In fact, VinFast is positioning itself to compete with Tesla, Inc. (NASDAQ:TSLA) and Honda Motor Company, Ltd (NYSE:HMC) as it seeks entry into the US electric vehicle market, Bloomberg reported.
With a net worth of $5.3 billion, Vuong remains optimistic about steering the company to success despite setbacks and challenges faced by global giants like Toyota Motor Corporation (NYSE:TM), the report read.
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VinFast, which debuted its first US vehicle sales last year, faces obstacles to establishing profitability as Chinese rivals escalate cheap EV exports and Tesla cuts prices amid declining electric car demand.
The company's initial U.S. rollout also faced criticism for malfunctioning features and erratic climate controls.
During a Bloomberg Television interview, Vuong was questioned about the duration of his support for the financially unprofitable venture. "Until I run out of money," Vuong told Bloomberg.
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"We don't care about the current price of the stock at the moment and we are not in a rush to bring more shares to the market," Vuong said. "The free float doesn't affect big and long-term investors," he added.
Price Action: VFS shares are trading higher by 11.60% to $4.39 at the last check on Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.