(Bloomberg) -- VinFast Auto Ltd. fell after posting a second-quarter loss of $527 million, as the electrical-vehicle maker struggles to expand beyond its home country of Vietnam.
Shares dropped as much as 9.3% on Thursday, following the firm’s first earnings report as a publicly traded company.
Deliveries of electric vehicles rose by more than 400% to about 9,500 in the three months through June, VinFast, which is listed in the US, said in statement. Sales more than doubled to $334.1 million. The net loss narrowed by about 8% at the company, which is controlled by Pham Nhat Vuong, Vietnam’s richest man.
Many of those EVs were sold to GSM Green and Smart Mobility Joint Stock Co., a Vietnamese taxi company that is also controlled by Vuong. In total, GSM Green has purchased about 7,000 of the nearly 19,000 vehicles VinFast has sold to date.
Selling vehicles to the taxi firm is “a key promotional lever for VinFast, with the potential to fuel demand and future sales directly to customers,” the company said in an emailed statement.
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The company also gave more details on its expansion strategy, expecting its first vehicles to reach Europe in the fourth quarter. The firm’s cars debuted in the US earlier this year.
The EV maker declined to comment on future fundraising plans. VinFast went public in the US in August via acquisition of a blank-check company.
Vuong owns more than 90% of VinFast’s shares, according to a filing this month.
--With assistance from Sean O'Kane.
(Updates with shares and information from the quarterly report starting in the first paragraph)
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