VinFast falls short of 2023 EV sales goal, targeting up to 50,000 but lagging behind.

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Vietnamese electric vehicle maker VinFast’s goal to deliver 50,000 vehicles this year is deemed “unrealistic” by an analyst. The company plans to expand its deliveries despite a weak global economy, aiming to deliver 40,000 to 50,000 vehicles in 2023, a significant increase from last year’s 7,400 EVs sold. However, the company only delivered 11,315 vehicles in the first half of this year, leading to concerns over the demand for VinFast’s EVs. Additionally, VinFast’s expansion in the US market has been slow, with only 137 VinFast EVs registered in the country. The company’s shares have dropped more than 50% since its IPO.

VinFast faces challenges in the highly competitive EV market, especially in the US, where Tesla and XPeng have delivered over 800,000 and 300,000 electric cars, respectively. Shifara Samsudeen, an equity analyst at LightStream Research, expresses doubt about VinFast’s ability to meet its ambitious sales target and believes there is further downside for the company. Meanwhile, analysts also point out that VinFast’s models are not competitively priced, with the VF9 priced higher than key competitors like the Tesla Model X. Additionally, VinFast vehicles do not currently qualify for a federal tax credit in the US.

VinFast, however, remains optimistic about its future prospects. The company plans to ramp up production to meet its delivery targets in international markets and expand to Southeast Asian and Middle Eastern markets. The CEO of VinFast, Lê Thị Thu Thủy, announced plans to deliver seven models globally over 2023 and 2024, including the VF9 in North America by the end of the year. While VinFast aims to break even by the end of 2024, analysts question the company’s pricing decisions and the ability to compete against more established EV models. Despite challenges, VinFast is determined to establish itself as a global automaker.

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