VinFast Auto Ltd (NASDAQ:VFS)’s plans to deliver 40,000 to 50,000 electric vehicles (EV) in 2023 looks to be in jeopardy as the Vietnamese EV maker has reached just 23% of that target thus far this year.
The company revealed that it delivered only 11,315 vehicles in the first half of 2023, of which 7,100 were sold to Vietnamese taxi company Green and Smart Mobility that is controlled by its parent firm Vingroup.
It sold 7,400 EVs last year, all of which were in Vietnam.
"VinFast’s ambitious EV plan seems unrealistic – it seems unlikely for VinFast to meet its 50,000 EV target for 2023 and our revised forecast suggests there is further downside despite shares dropping more than 50% vs IPO," LightStream Research equity analyst Shifara Samsudeen told CNBC.
"More than 50% of EV volume during 1H2023 were to a related company while US volume was less than 200 units raising serious concerns over demand for VinFast’s EVs," Samsudeen added.
The company told the media outlet that "VinFast will soon expand to Southeast Asian and Middle Eastern markets soon, which will also boost our production."
Shares of VinFast Auto climbed 6% to $11.91 in midday trading on Thursday but have plunged 86% over the past month.
Contact Sean at sean@proactiveinvestors.com