VinFast Auto Ltd (NASDAQ:VFS)'s long-term growth strategy and positioning in the global electric vehicle market may be underappreciated by investors, according to Wedbush analysts following recent meetings with the company’s leadership.
After discussions with management, the analysts wrote in a note that they “remain positive on VFS’ broader strategy and unique position in the global EV market,” while noting that “the company’s innovative products are flying under the radar.”
Wedbush highlighted that VinFast is prioritizing expansion over near-term profitability, with expectations that the company will reach gross profit positivity in late fiscal 2027 and achieve EBITDA-positive results in fiscal 2028.
“Investors are overlooking key pieces of the VFS story as the company opts to prioritize growth over profitability near-term to drive long-term profitable growth,” they wrote.
The firm also pointed to VinFast’s positioning in the current geopolitical environment, describing the company as relatively neutral compared with competitors. VinFast is “the world’s only prominent non-Chinese and non-American EV OEM at scale,” which Wedbush believes could appeal to governments seeking diversification from major global powers. Its vertically integrated manufacturing model was highlighted as a key differentiator, giving the company greater control over its supply chain and cost structure.
According to the firm, VinFast’s next-generation electronic and electrical architecture carries significantly lower costs than traditional automakers, at roughly 20% of legacy US and European OEM levels, supported by in-house research and development. This integration is expected to support faster scaling of software-defined vehicles.
Wedbush also highlighted continued financial backing for the company, noting that its chairman has provided approximately $11.6 billion in support to date. Management expressed confidence that existing liquidity, about $3.1 billion, would be sufficient to fund planned investments in 2026, including roughly $1.6 billion in capital expenditures and $1.4 billion in R&D.
The company is also leveraging its broader ecosystem to support demand. Wedbush wrote that VinFast’s V-Green charging network and GSM ride-hailing platform could “create a unique flywheel by removing infrastructure barriers” and generating fleet demand, with GSM expected to account for 20% to 25% of annual EV deliveries over time.
In terms of market expansion, VinFast is targeting up to 50% share of Vietnam’s auto market by 2030, while aiming to deliver more than 100,000 vehicles in India and increase its presence in Indonesia and the Philippines.
Beyond its core EV business, Wedbush noted that VinFast is making incremental progress in autonomous driving and artificial intelligence. The company is working with partners including Tensor on a robocar program featuring Level 4 advanced driver assistance systems, with planned rollout across Europe, the Middle East, and the United States. It is also collaborating with Autobrains on autonomous vehicle development, with pilot testing underway on VF 8 and VF 9 models in Hanoi using an L2++ system.
While these efforts remain in early stages, the analysts noted potential longer-term benefits, including data accumulation from operating in complex urban environments.
“We believe that VinFast’s involvement with the Vingroup ecosystem will accelerate the development of its AI portfolio as it looks to bring its autonomous capabilities to the global stage while its geopolitically neutral nature incrementally becomes a tailwind,” they wrote.
Wedbush maintained an ‘Outperform’ rating on VinFast shares with a $6 price target. The stock traded hands at $3 on Tuesday afternoon.