On March 1, 2023, VinFast electric vehicles were parked in a store in Los Angeles, waiting to be delivered to the first customers.
Lisa Butland | Reuters
Vietnamese electric car maker VinFast’s ambitious plan to deliver as many as 50,000 vehicles this year is “unrealistic,” an analyst said.
VinFast said it expected Delivery of 40,000 to 50,000 vehicles in 2023 despite a weak global economy.That’s almost seven times 7,400 electric vehicles sold Last year, it was all in Vietnam.
The company only delivers 11,315 vehicles in the first half of the year The company said during its second-quarter earnings call on Sept. 21 that 7,100 taxis this year were sold to Vietnamese taxi company Green and Smart Mobility, which is controlled by parent company Vingroup. Green SM launches pure electric taxi service VinFast model used in Vietnam.
Shares of Vingroup, one of Vietnam’s largest conglomerates, closed at 45,200 dong ($1.85) on Wednesday, their lowest level since November 2017, according to Refinitiv data.
“More than 50% of EV sales in the first half of 2023 came from a related company, with less than 200 units sold in the United States, raising concerns about demand for VinFast EVs,” LightStream Research equity analyst Shifara Samsudeen said in a report. Serious concern.” Report Posted on SmartKarma.
As of June, only 137 VinFast electric vehicles — all VF8 SUVs — were registered in the U.S., according to automotive data provider S&P Global Mobility, which CNBC confirmed.
U.S. sales are not expected to improve anytime soon. The reputational issues brought about by the launch of VF8 will not be solved by VF9.
David Byrne
Third Bridge Analyst
Meanwhile, U.S. competitors Tesla and Chinese XPeng Electric vehicle sales in the first half of the year were 889,015 and 300,145 respectively.
Samsudeen said: “VinFast’s ambitious electric vehicle plans seem unrealistic. It seems unlikely that VinFast will achieve its goal of producing 50,000 electric vehicles in 2023, and our revised forecasts indicate that although the stock price is down more than 50% from the IPO, There is still room for further downside.”
In response to CNBC’s request for comment, VinFast said the company was “increasing production to ensure delivery targets for international markets.”
“In addition, VinFast will soon expand into Southeast Asia and the Middle East, which will also increase our production,” the company told CNBC.
VinFast, which has not yet made a profit, began listing on Nasdaq on August 15. The stock price soared more than 250% on the first day of trading, but has since fallen by more than 60%.
ambitious plan
VinFast has been ramping up its expansion efforts outside of Vietnam this year as it looks to compete with global automakers.
Lê Thị Thu Thủy, CEO of VinFast, said: “We have established operational facilities, including sales networks in Vietnam, North America and Europe. Looking forward, we plan to expand our business scope to Asia Pacific, the Middle East and other potential markets around the world.” during the company’s second-quarter earnings call.
“We have ambitious plans to deliver seven models in Vietnam, North America, Europe and Asia in 2023 and 2024, such as the VF9 in North America before the end of the year, and plan to deliver the first VX6 later this year, the VX7 and VF3, In 2024 it’s VX7 and VF3,” Lê said.
Sales in our U.S. stores are improving. With the upcoming dealer additions, we will likely exceed our plans for this year.
higher price
Analysts also noted that VinFast’s models are not competitively priced.For example, VinFast’s VF9 Models start at $83,000, and Tesla ModelX Prices start at $68,590, after federal tax credits and gas savings.
Additionally, Tesla passenger cars are eligible for a $7,500 federal tax credit in the United States, while VinFast vehicles are currently not eligible because they are not manufactured in the United States
“(This suggests) that increasing sales in the U.S. and other foreign markets may not be as easy as suggested given the lower selling prices of more mature EV models,” Samsudeen said.
“Our experts question the pricing decision for the VF9 in the U.S. market. Although the platform is derived from internal combustion engines, it is more expensive than major, more established competitors such as the Kia EV9 and Tesla Model X, affecting its performance and Range,” Brian said.
VinFast told CNBC that “experts carefully study our vehicles and price them appropriately.” It also said it did not consider some of the vehicles mentioned to be competitors, but did not specify the model.
During the second quarter, VinFast reports net loss US$526.7 million, an increase of 8.2% over the same period last year.
VinFast founder Pham Nhat Vuong expects to reach breakeven by the end of 2024 reportedly told investors at the company’s annual general meeting in May.
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