VinFast project off track amid hemorrhaging cash problems | North Carolina

(The Center Square) – Nothing quick enough to describe North Carolina’s largest economic development project by Vietnam-based automaker VinFast.

Production will not be on schedule this summer. And, pending the balance of his balance sheet, the possibility of never remaining in play.

Scheduled for late March 2022 with production to begin in July 2024, the initial $2 billion investment grew into a $4 billion electric vehicle plant and the “crown jewel” of the company’s global expansion. According to reports published this week, the automaker has put on the brakes, to say the least, which follows news from December when VinFast reduced the square footage at the new plant from 995,500 to 782,255.

The permits that allowed the trespassing in Moncure last July have been withdrawn, and new filings are being reviewed. That won’t be a problem.

Money is in, and VinFast is bleeding. VinFast shares on the NASDAQ are down nearly 30% this week and more than 90% since last year’s all-time highs. First quarter earnings came out on Wednesday.

VinFast generated $300 million in revenue in the first three months and operated at a loss of $422 million. Financing expenses last quarter were $173 million. Cash on hand in April was $123 million.

Earlier this month, a federal securities lawsuit was filed against the company. Shareholders say the information has been misleading.

VinFast had a more than 400% increase in vehicle sales in the first quarter, to nearly 9,700. Most of them were in Vietnam. For context, Tesla sells about 1 million a year, and about half in America making it number 8 among all automakers in the country. VinFast plans to sell about 100,000 this year.

VinFast is estimated to lose $2 billion in 2023, and more than $4 billion by 2021.

Democratic Gov. Roy Cooper touted ownership of a $1.2 billion stimulus package to land VinFast. The analysis is $400 million from Chatham County; $316 million over 32 years in Career Development Investment Grants; $450 million for site preparation, road improvements, and additional water and sewer infrastructure; a $50 million grant from the Golden LEAF Foundation; and $38 million for community college tuition.