VinFast Auto WRT VFSWW 2025Q2 Earnings Preview Downside Ahead on Pin Pricing Shift

VinFast Auto WRT is expected to report weaker-than-anticipated earnings in Q2 2025 due to the company’s decision to discontinue its battery-as-a-service (BaaS) model. The shift, effective from March 1, 2025, means customers must now purchase vehicles with batteries, increasing upfront costs. This policy change, intended to reduce long-term operational complexity and improve margins, may temporarily pressure demand and profitability. Analysts project lower-than-expected revenue and net loss, as the transition could deter price-sensitive buyers and delay order cycles. However, the company is offering extended free charging and other incentives to mitigate the impact and boost EV adoption.

VinFast Auto WRT reported a revenue of $163.06 billion in Q1 2025, down significantly from the previous quarter, with a net loss of $176.94 billion, translating to an EPS of -$7.56 thousand. Gross profit was also negative at $57.36 billion, indicating ongoing margin pressures despite increased vehicle deliveries. The company delivered 97,399 electric cars in 2024, dominating the Vietnamese market, but Q1 2025 results suggest a moderation in growth, possibly due to pricing challenges and supply chain issues.

Recent developments include the discontinuation of the BaaS model, which will now require customers to buy vehicles with batteries. This policy shift aims to simplify operations but may increase initial costs for buyers, potentially reducing demand in the short term. VinFast is offering extended free charging at V-Green stations until December 31, 2027, to offset the impact. The company also plans to expand its EV charging infrastructure for motorcycles and deploy convenient charging boxes at dealerships nationwide. VinFast ended 2024 as the top-selling brand in Vietnam and aims to double global deliveries in 2025, but the BaaS transition could pose short-term headwinds.

Despite strong market position and ambitious delivery targets, VinFast faces near-term downside risks from the BaaS policy shift and higher vehicle costs. The company's financials remain under pressure, with negative net income and gross profit. While extended charging incentives and expanded infrastructure support growth, the shift in customer financing models may temporarily slow adoption. A bearish outlook is warranted unless the company can swiftly adapt and stabilize demand.