Vietnam’s VinFast reported a larger third-quarter net loss due to expansion efforts and fierce competition in Southeast Asia. Shares fell 12%. The company took on $250 million in loans to fuel growth, despite facing challenges from Tesla and Chinese EVs. Third-quarter loss widened to $910.85 million, with negative gross margin at 56.2%.

VinFast’s strategy in Q3 focused on boosting revenue. The company anticipates higher international sales contribution in the fourth quarter, particularly from India. E-scooter and e-bike deliveries surged after Hanoi announced a ban on petrol-powered motorbikes. Total revenue for the quarter increased by nearly 47% to 18.1 trillion dong.

Despite efforts to cut costs and expand, VinFast faces stiff competition and premium pricing challenges in Asian markets. The company’s focus has shifted from the U.S. and Europe. Quarterly gross margin was negative 56.2%, with higher warranty provisions and vehicle costs affecting performance. Executives aim to drive top-line growth and increase international sales contribution in the fourth quarter.

Read more at Yahoo Finance: VinFast’s quarterly loss widens on hefty spending