Emerging Tesla Rival Vinfast Launches Affordable Mini E-SUV In Vietnam, Aims To Deliver 20K Units In 2024

Vietnamese electric vehicle manufacturer VinFast Auto Ltd. (NASDAQ:VFS) has introduced its new electric mini SUV, the VF 3, at an affordable price of $12,800, with plans to deliver at least 20,000 units this year.

What Happened: The compact EV is designed to cater to the needs of urban drivers, particularly in areas with narrow roads and alleys, such as the central parts of Hanoi, reported Nikkei.

The vehicle, which has a maximum range of 215 kilometers, has already received a significant number of orders since its reservation period in May.

VinFast, a subsidiary of Vingroup, aims to initially sell the VF 3 in Vietnam and later expand its sales to the Philippines and other countries. The company has set its EV sales target for 2024 at 80,000 vehicles, more than double the previous year’s figure.

See Also: Former Tesla Exec Says Biden Administration’s Treatment Of EV Giant Was ‘Pretty Fair’ Despite Musk’s Allegations That It Would Rather The Company ‘Be Dead Than Not Unionized’

Why It Matters: VinFast’s new EV launch comes at a time when the company has been struggling with increasing financial risks, partly due to its dependency on sales to associated companies and a declining global EV market.

The company’s financial troubles have been further compounded by its U.S. factory construction delay, which led to a reduction in its annual sales target.

Despite these challenges, VinFast has been actively pursuing its expansion plans. The company recently announced its intention to secure a $250 million bank loan to finance the construction of a new assembly plant in Indonesia.

Additionally, VinFast has been expanding its presence in Europe to enhance its after-sales service network, despite analysts lowering their forecasts due to a slump in EV demand.

Despite this, VinFast's market capitalization skyrocketed in August 2023, securing it the third position globally among automakers, trailing only Tesla Inc. (NASDAQ:TSLA) and Toyota Motor Corp. (NYSE:TM).

Price Action: VinFast’s stock closed at $3.90 on Thursday, down 1.02% for the day. In pre-market trading, the stock decreased further 1.28%. Year to date, the stock has declined 44.68%, according to data from Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote