Vietnamese electric vehicle (EV) manufacturer VinFast (VFS) unveiled a fourth-quarter revenue increase of 133%, falling slightly short of expectations. However, the company remains undeterred, with plans to nearly triple its vehicle sales in the coming year as it ventures into new markets as per Reuters.
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This optimistic outlook has boosted shares by 2.3% in premarket trading. While VinFast sets ambitious goals for expansion, other automakers are scaling back their EV sales targets and investment plans amid weakening demand in key markets like the United States.
VinFast, which entered the U.S. market in March last year with its VF8 sport utility vehicle, primarily relies on domestic demand, with approximately 60% of deliveries directed to its affiliate, Green SM (GSM). GSM, a taxi operator and leasing provider supported by VinFast CEO Pham Nhat Vuong, serves as a crucial distribution channel for the company.
Despite facing challenges such as slow EV adoption in certain regions and heightened price competition, VinFast remains determined to achieve significant growth. The company aims to deliver 100,000 units this year, a substantial increase from the nearly 35,000 deliveries made in 2023, which fell short of the initial target of up to 50,000 units.
In the final quarter of 2023, VinFast recorded revenue of $437 million, falling short of analysts’ average estimate of $570.9 million, as reported by LSEG data. However, the company saw a notable 91% year-over-year increase in full-year revenue, reaching $1.2 billion.
Established in 2017 and venturing into electric vehicle production since 2021, VinFast has unveiled ambitious expansion strategies for its EV operations overseas. The company is currently in the process of building a factory in North Carolina, slated for completion in 2025, and is also eyeing its inaugural manufacturing facilities in India.
Following its Nasdaq debut in August, VinFast witnessed a remarkable surge in market capitalization, reaching $85 billion, surpassing that of established U.S. automaker Ford. However, its valuation has since declined to $12 billion, with its entry into the U.S. market coinciding with heightened price competition, spearheaded by EV frontrunner Tesla.
4 Electric Vehicle(EV) Price fell : Buy Now
The current downturn in electric vehicle (EV) demand presents challenges across the automotive industry, from established manufacturers to emerging EV startups. Factors such as higher prices compared to traditional gas-powered vehicles, increased financing costs, and inadequate charging infrastructure have all contributed to stagnating EV growth in the United States.
However, amidst these challenges, there’s a silver lining for consumers seeking to purchase or lease an EV.
Recent findings from Kelley Blue Book reveal a notable decline in new EV prices, with a 10.8% decrease observed in January compared to the previous year. In December, EV transaction prices hit a 12-month low at $53,611.
Data from online car shopping platform CarGurus further underscores the favorable conditions for EV buyers. Compared to the previous year, EVs spend more time on the market while the opposite is true for internal combustion engine (ICE) vehicles. Additionally, the average list price for new EVs on CarGurus decreased by 9.1% year over year to approximately $60,000 in January.
The used car market reflects an even more significant drop in EV prices, with CarGurus reporting an average list price of around $38.7K for used EVs in January, representing a 20.6% decrease compared to the previous year.
Overall, these trends indicate that now is an opportune moment for consumers to explore EV options before market conditions stabilize and prices begin to rise again. Below, we highlight some of the top deals available for new EVs, considering incentives in the New York City metro area and excluding destination charges, which vary depending on the manufacturer and vehicle. Read More
