Vietnamese electric vehicle (EV) maker, VinFast, is facing skepticism from analysts about its plan to deliver 40,000 to 50,000 vehicles this year, which they deem as “unrealistic.” The company sold only 7,400 EVs last year, and in the first half of this year, it delivered just 11,315 vehicles, with more than half going to a related company. The low sales numbers have raised concerns about the demand for VinFast’s EVs, especially in the US where the company has registered only 137 vehicles. In contrast, rivals Tesla and XPeng delivered 889,015 and 300,145 electric cars, respectively, in the same period.
VinFast’s ambitious plans to expand globally and compete with automakers worldwide have also been questioned. The company is aiming to deliver seven models in multiple markets by 2024, but analysts have noted that VinFast’s models are not competitively priced. For example, the VF9 model is priced at $83,000, higher than the Tesla Model X, which starts at $68,590 after federal tax credit and gas savings. Additionally, VinFast vehicles do not qualify for the $7,500 federal tax credit available to Tesla cars as they are not built in the US. These pricing decisions and the lack of incentives make it challenging for VinFast to increase sales volume in foreign markets.
VinFast, which began trading on the Nasdaq in August, has seen its share price drop more than 60% since then. The company remains optimistic about its future prospects and plans to ramp up production to meet its delivery targets. It is also looking to expand to Southeast Asian and Middle Eastern markets to boost its production. However, analysts believe that VinFast’s path to success may be challenging, given the competitive landscape and reputational issues caused by the launch of its vehicles.