Where Will VinFast Auto Stocks Be in 10 Years?

If you think the world doesn't need another electric vehicle (EV) manufacturer, you are certainly not the only one who thinks so. However, the world is full of surprises, and Artech is an electric vehicle manufacturer based in Vietnam.VinFast Auto (NASDAQ resonance code: VFS)There may still be room for development in the next decade.

Unfortunately, there is no crystal ball that can tell investors whether VinFast's market capitalization will expand by 2034, or whether the company will still exist by then. However, if you have a speculative personality and can forgive some financial mistakes, VinFast stock might warrant a small position in your long-term portfolio.

VinFast Overview Bike "Wild"

In the increasingly crowded global electric vehicle market, start-ups need to stand out in order to survive. At least, that seems to be the rationale behind VinFast's recent model releases.

VinFast wants to break into the U.S. EV market and "expects to have about 130 points of sale [in North America] by the end of this year." Meanwhile, the company last year launched its first electric vehicle in the U.S. atVietnamNo fewer than four new SUV models were announced.

Apparently, VinFast is still very active and ambitious, despite evidence that sales growth in the global electric vehicle market is slowing down. Perhaps in response to the slowdown, VinFast has introduced several eye-catching models.

One of these is the VF Wild mid-size electric pickup truck, which has adjustable bed sizes that span from 5 to 8 feet. It also features a "panoramic glass roof and digital side and rear mirrors for improved aerodynamics".

VinFast's VF 3 micro SUV is "wild" in its own way, but for lack of a better word, it's adorable and charming, and though small, the VF 3 is a four-seater with a range of over 125 miles on a full charge. It's easy to imagine the VF 3 parking in spaces where full-size EVs wouldn't fit.

VinFast's unusual automotive products aren't limited to cars. Not long ago, the company unveiled the DrgnFly e-bike, which features what the company calls a "slender V-shaped frame reminiscent of a flying dragon. "The DrgnFly has a range of up to 63 miles, so open-minded e-bike enthusiasts obviously won't have to recharge as often.

Recharges as income increases

If any of these reconnaissance vehicles catch on, VinFast's sales will grow exponentially over the next 10 years. The company has already seen impressive sales growth, though it doesn't seem to be reflected in the stock price.

In fact, based on the divergence between VinFast's stock price and the company's sales trajectory, there could be a compelling buying opportunity here.In the fourth quarter of 2023, VinFast's revenue grew 1,33% year-over-year to $437 million. For the full year, revenue grew 91% to $1.2B.

VinFast's gross margins of negative 40.1% for the fourth quarter of 2023 and negative 46% for the full year will undoubtedly upset some potential investors. However, these results show solid improvement compared to the company's gross margins of negative 82.6% in the fourth quarter of 2022 and negative 82% in fiscal 2022. Also, keep in mind that VinFast spent $213 million in the fourth quarter of 2023 to advance the company's VF 6 and VF 7 SUV models, build VinFastProduction in North CarolinaThe factory, as well as the development of pre-studies and charging stations.

Like every other start-up electric vehicle manufacturer, VinFast could cease to exist in 10 years, and the company's stock price could go to zero. That's why I think it's important to keep a small position, if any, in VinFast stock.

VinFast has the potential to capture a multinational market for unusual, innovative new energy vehicles. Obviously, even VinFast's most "wild" electric vehicles are fully functional and have a good range.

In addition, they look great and will appeal to drivers who crave attention. Therefore, if VinFast can capitalize on the "wow" factor of its compelling electric vehicles and �continue to close the margin gap� it has the potential to realize multiple gains.

Should you invest $1,000 in VinFast Motors now?

Consider the following before buying shares of VinFast Auto Ltd:

Motley Fool Stock AdvisorThe analyst team has just named what they believe to be the best value for investors.10Only ...... and VinFast Auto Ltd. were not included. The 10 stocks that made the list could generate huge returns in the coming years.

Stock AdvisorIt provides investors with an easy-to-understand blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. Since 2002, StockAdvisorThe service has more than doubled the return on the S&P 500 Index.

View 10 stocks only

*Stock Advisory Rates as of April 4, 2024

David Moadel does not own any of the shares listed above.The Motley Fool does not own any of the shares listed above.The Motley Fool has a disclosure policy.

Where Will VinFast Automotive Stock Be in 10 Years? This post was originally published by The Motley Fool.