VinFast Auto Stock Price Plummets Amid Global Expansion Efforts
Why VinFast Auto Stock Dropped This Week
VinFast is spending money expanding while EV prices are dropping. It has been a mixed week for stocks in the electric vehicle (EV) sector. Many EV stocks are extending year-to-date losses. One of those is Vietnamese EV maker VinFast Auto (NASDAQ: VFS).
Increased spending and larger losses
- VinFast has expansion plans across the globe. Its first North American plant is under construction in North Carolina.
- VinFast is also ramping up production as these projects are underway. The company delivered nearly 35,000 EVs in 2023, but expects to ship 100,000 in 2024.
- But slowing EV sales growth is causing larger EV makers to cut prices, notably in VinFast's local Asian market. BYD and Tesla have both been working to increase sales in China.
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Howard Smith has positions in BYD and Tesla. The Motley Fool has positions in and recommends BYD and Tesla. The Motley Fool has a disclosure policy.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.