Following the release of VinFast’s (NASDAQ:VFS) Q1 financial update this week, investors received mixed news. While the Vietnamese electric vehicle (EV) manufacturer reiterated its goal of producing 100,000 EVs this year, it fell short of expectations in terms of vehicle production and revenue for the first quarter.

Due to these factors, analysts at BTIG, an investment banking firm, revised their stock price target for VinFast from $8 to $5 per share. Despite the adjustment, this new target still suggests a potential 98% increase from the current price of $2.52 over the next 12 months. BTIG analyst Gregory Lewis and his team are staying with their buy rating for VinFast stock.

Since its initial public offering (IPO) through a special purpose acquisition company (SPAC) merger in August 2023, VinFast stock has experienced significant fluctuations. After hitting a high of over $80 per share, the reality of being an EV startup has contributed to a decline in share price to the low single digits.

For the first quarter, VinFast reported revenue of approximately $300 million, below the expected $400 million, and a loss higher than anticipated. However, the company is pursuing global expansion plans to reach its 100,000-vehicle production target for 2024. This includes the establishment of 16 new dealerships in the U.S. and the construction of a manufacturing plant in North Carolina. VinFast aims to import vehicles to boost brand awareness ahead of the completion of the North Carolina facility.

Despite current challenges, analysts believe VinFast’s dealership expansion and increased production capacity will help the company’s stock rebound. However, caution is advised due to the uncertainties and significant capital expenditure involved at this stage of the company’s development.