VinFast: further losses of 599 million for the first quarter of 2023
The Vietnamese manufacturer VinFast has been trying to break into the electric vehicle market in North America for some time. While the our team recently had the chance to test a production version of the VF 8, there are still questions about the brand’s viability. Many new companies are trying to break into electrics, but not all will have the success of Tesla.
While the owner of VinFast has invested again without the operations, it is learned that the brand will add US$599 million to its losses for the first quarter of 2023. This new assessment comes as VinFast tries to become a public brand in the UNITED STATES.
According to what can be learned, the company has mentioned to the American authorities that it foresees more operational losses in the short term, since it continues to develop its chain of production, sales and services while finalizing the establishment of its factories.
You should know that VinFast is supported by one of the richest men in Vietnam, Pham Nhat Vuong. The company plans to go public in the United States in the second half of this year. The transaction, which is expected to close by July 20, would give VinFast an equity value of approximately $23 billion.
However, the automaker faces stiff competition not only from traditional automakers who are increasingly developing electric vehicles, but also from Tesla who continues to exert pressure to lower prices. The latter has just started marketing its first model in Canada and the United States, the VF 8.
Conclusion
We hope that the manufacturer VinFast will be able to keep its promises, because we would like to see it evolve in the market. However, we will follow the file closely and in the meantime, we advise you to wait before getting a VinFast vehicle.
