Vietnamese Tesla Rival VinFast Expands Into Europe To Increase After-Sales Service; Lower Forecast Analysts Report Declining EV Demand – VinFast Auto (NASDAQ:VFS)

VinFast Auto Ltd. VFS stocks are trading lower on Friday.

Company he announced the signing of a cooperation agreement with Mobivia, one of the leading brands of car repair and maintenance in Europe.

The deal extends the company’s reach to a wider network of after-sales services for VinFast customers in France and Germany.

“VinFast strongly believes that Mobivia’s extensive after-sales service network and skilled technical team will strengthen customer confidence in the VinFast brand, and guarantee our European customers an unparalleled experience,” said Jean-Christophe Mercier, Vice President of the President of Aftersales and Customer Ownership Experience Vinfast. Europe.

Cantor Fitzgerald analysts Andres Sheppard and Anand Balaji reiterated an Overweight rating on the stock, lowering the price forecast to $8 from $9.

VinFast recently reported first quarter earnings, and EV deliveries increased 444% year over year, totaling 9,689. VinFast reaffirmed its FY24 target of 100,000 EV deliveries amid global expansion efforts and new product launches.

Analysts continue to project 80,100 vehicle deliveries in FY24 (including Electric Buses), which remains conservative, given the slowdown in EV demand in the industry.

VinFast’s sales network continues to grow – targeting North America, India, Indonesia, Thailand, and the Middle East as Key Markets, analysts add.

Analysts note that the company will continue to pursue additional merchants to sign on in the coming quarters.

Despite the situation, analysts lowered price forecasts due to lower earnings, lower margins and exchange rate fluctuations.

Analysts cut FY24 revenue estimates to $2.4 billion from $2.6 billion.

Analysts also cut overall FY24 rates to ~(24%) from ~(13%), warning of slow improvement in auto shipments and production.

Price Action: Shares of VFS traded down 5.17% to $2.57 at last Friday’s check.