Vietnamese automaker VinFast is facing consumer skepticism after launching its first electric vehicle in the U.S. earlier this year. Experian data shows the EV maker with just 128 new-vehicle registrations for its VF 8 crossover from January to May.
VinFast is selling the two-row VF 8 in California, the biggest EV market in the country, before expanding to other states. It has cut prices and offered lease deals to move two shiploads of VF 8s that have arrived from Vietnam.
But the newcomer faces big challenges.
The brand is largely unknown in the U.S., the VF 8 is priced above similar vehicles from Ford, Volkswagen and Hyundai, and Model Y price cuts make the Tesla crossover a more competitive deal, analysts say.
The base VF 8 starts at $47,200 with shipping and doesn’t qualify for the federal tax incentive of up to $7,500. The Tesla Model Y starts at $51,380 and does qualify because it’s built in North America.
The VF 8 has received mixed reviews from automotive journalists, some of whom said it felt like a rushed product.
Reuters reported Friday that VinFast is also facing headwinds with its plans to list its shares in the U.S. through a special purpose acquisition company.
According to Experian data, the VF 8 had one new registration in February, 16 in March, 66 in April and 45 in May. Among the 25 brands on Experian’s list of new EV registrations, VinFast was No. 22, followed by Jaguar, GMC and Mazda.
VinFast did not immediately respond to a request for comment on U.S. sales.
The automaker has plans to sell a lineup of EVs, including the three-row VF 9 crossover expected this year. The VF 9 will start at $84,200, VinFast said. Two smaller crossovers, the VF 6 and VF 7, are designed to be more affordable.
VinFast has been looking for ways to finance its expansion from its small base in Vietnam to larger markets in North America, Europe and parts of Asia. Some of the money has come from parent company Vingroup, a Vietnamese conglomerate, the automaker said. VinFast also plans to raise funds through a public listing of shares.
According to Reuters, shareholders of Black Spade Acquisition, a special purpose acquisition company that plans to merge with VinFast to allow its U.S. stock market listing, have redeemed over 80 percent of their shares. Reuters cited information provided by Black Spade Acquisition.
That development could be a setback for VinFast, which had initially planned a U.S. listing on its own and has struggled to start production and ramp up sales outside Vietnam.
“There is no impact on the listing process or agreed valuation,” the automaker said in a statement to Reuters.
Earlier this year, VinFast delayed plans to begin building a $4 billion plant in North Carolina. It pushed the start date to 2025 from 2024.
VinFast posted a $598 million loss in the first quarter on a 49 percent drop in revenue, Reuters reported last month. The company made the disclosure in a filing to U.S. securities regulators as it looks to complete the special purpose acquisition company merger that will value the automaker at $23 billion.