VinFast aims to sell up to 50,000 EVs in 2023 — but it has only hit 23% of its target so far
VinFast electric vehicles are parked before delivery to their first customers at a store in Los Angeles, March 1, 2023.
Lisa Baertlein | Reuters
Vietnamese electric vehicle maker VinFast‘s ambitious plan to deliver as many as 50,000 vehicles this year is “unrealistic,” according to one analyst.
VinFast said it expects to deliver 40,000 to 50,000 vehicles in 2023 despite a weak global economy. That’s almost seven times the 7,400 EVs it sold last year, all in Vietnam.
The company delivered only 11,315 vehicles in the first half of this year, of which 7,100 were sold to Green and Smart Mobility, a Vietnamese taxi company controlled by parent Vingroup, the firm said during its second-quarter earnings call on Sept. 21. In April, Green SM launched a pure EV taxi service in Vietnam with VinFast models.
Shares of Vingroup, one of the largest conglomerates in Vietnam, closed at 45,200 Vietnamese dong ($1.85) on Wednesday, its lowest level since November 2017, according to Refinitiv data.
“More than 50% of EV volume during 1H2023 were to a related company while U.S. volume was less than 200 units raising serious concerns over demand for VinFast’s EVs,” Shifara Samsudeen, equity analyst at LightStream Research, said in a report published on SmartKarma.
Through June, only 137 VinFast EVs — all VF8 SUVs— were registered in the U.S., according to automotive data provider S&P Global Mobility which CNBC confirmed.
U.S. sales aren’t expected to improve any time soon. The reputational issues caused by the launch of the VF8 will not be solved by the VF9.
David Byrne
Analyst, Third Bridge
Meanwhile, U.S. rival Tesla and China’s XPeng delivered 889,015 and 300,145 electric cars, respectively, during the first half of the year.
“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,” said Samsudeen.
In response to CNBC’s request for comment, VinFast said it is “ramping up production to ensure delivery targets in international markets.”
“Besides, VinFast will soon expand to Southeast Asian and Middle Eastern markets soon, which will also boost our production,” the company told CNBC.
VinFast, which has yet to make a profit, began trading on the Nasdaq on Aug. 15. Its share price soared more than 250% on the first day of trading, but has since dropped more than 60%.
Ambitious plans
VinFast has been ramping up its expansion outside of Vietnam this year, in a bid to compete with automakers globally.
“We have established our operational facilities, including sales network in Vietnam, North America and Europe, and moving forward, we plan to expand our coverage to Asia-Pacific, Middle East and other potential markets globally,” VinFast CEO Lê Thị Thu Thủy said during the firm’s second quarter earnings call.
“We have ambitious plans to deliver seven models in Vietnam, North America, Europe and Asia over 2023 and 2024, such as delivering the VF9 in North America by the end of the year, as well as targeting first delivery of the – the VX6 later this year and the – the VX7 and VF3 in 2024,” said Lê.
Our U.S. sales are improving at our stores. And with the upcoming addition of dealers, we will likely exceed our plan for the year.
Higher prices
Analysts also noted that VinFast’s models are not competitively priced. For example, VinFast’s VF9 model is priced from $83,000 whereas the Tesla Model X is priced from $68,590 after federal tax credit and gas savings.
Additionally, Tesla passenger vehicles qualify for a $7,500 federal tax credit in the U.S., while VinFast vehicles are currently not eligible as they are not built in the U.S.
“[This suggests] that it may not as easy as said to increase the sales volume in the U.S. and other foreign markets given more established EV models are selling for a lower price,” said Samsudeen.
“Our experts questioned the pricing decision of VF9 in the US market. It is more expensive than key, more established competitors such as the Kia EV9 and the Tesla Model X, despite the platform being internal combustion engine-derived, compromising its performance and range,” said Bryne.
VinFast told CNBC that “experts have carefully researched and priced our vehicles properly.” It also said it does not consider some of these mentioned vehicles as their competitors, without specifying models.
During the second quarter, VinFast posted a net loss of $526.7 million, improving 8.2% from the same period a year ago.
VinFast expects to break even by the end of 2024, its founder Pham Nhat Vuong reportedly told investors at the company’s annual general meeting in May.
Toyota USA has refreshed its RAV4 for 2026, and, in a significant step forward for efficiency, Toyota has axed the non-hybrid version of the vehicle. The RAV4 will now only be available in HEV and PHEV versions starting in the 2026 model year.
However, in an act of greenwashing reminiscent of many things Toyota has done before, it’s confusingly calling its vehicles “100% electrified” – despite that every single RAV4 includes a gas engine.
The improvements include new looks and trim lines, including an outdoorsy Woodland model (like the bZ just got) and a higher-performance “GR SPORT” model (though, we must remind everyone, that SUVs are not sportscars and will never be sportscars), and higher power from both PHEV and HEV models.
The PHEV model also boasts improved range, bumped from 42 miles to 50 miles – still lower than we’d typically consider worthy of coverage on Electrek, but the number is at least usable to keep the average driver on electric power for most of their daily driving (if they bother to plug it in).
Some trims will have DC fast charging, and you’ll be able to charge from 10-80% in 30 minutes.
Notably, the RAV4 no longer includes any option for a non-hybrid powertrain. All trims are either hybrid or plug-in hybrid. Previously, it had been anticipated that an EV model might join the lineup, but it looks like Toyota is just sticking with the newly-renamed bZ model for that purpose.
Toyota calls its new RAV4 options “highly efficient electrified powertrains,” but did not specify anticipated EPA mileage numbers for the HEV model, or for the PHEV when operating on gas power. The current RAV4 hybrid gets 39mpg (that’s about 10mpg better than the non-hybrid), and we would imagine something in that ballpark for the updated model.
The 2026 RAV4 will be available in Toyota dealerships across the US “later this year.” Pricing has not yet been announced.
Electrek’s Take
But the real issue here is the use of the word “electrified,” and specifically, “100% electrified.”
Toyota has a long history of deceptive advertising when it comes to its electrification efforts. Its lies have gotten it in trouble before, both in Norway and in the US.
Toyota is also the largest auto industry funder of climate denial, and has consistently ranked as the worst auto industry lobbyist on climate policy worldwide.
So its use of the word “electrified” should be looked at with some skepticism, since the company has used it before to confuse consumers into thinking that its vehicles are more efficient than they really are. For some previous coverage on that, see the FTC complaint filed against Toyota over its false electrification claims.
In this case, Toyota has upped the ante, not just claiming that its vehicles are electrified, but “100% electrified.”
There are a lot of terms that get used confusingly in the EV industry, oftentimes purposefully, in order to greenwash companies’ efforts. EV, PHEV, EREV, FCEV, HEV, BEV, electrified, all-electric, and so on.
But one thing that has heretofore been reserved for models that do not include a gasoline engine is any variation on “all-electric,” “100% electric,” “fully electric” or the like.
So, moving from “electrified” to “100% electrified” certainly seems like intentional phrasing by Toyota here. “Electrified” was already questionable, but “100% electrified” is well over the line.
So despite that we should be happy about a step-change improvement in powertrain availability on the RAV4, and the elimination of the non-hybrid model, Toyota just had to play one of its tricks and remind us why they’re the greatest enemy of electrification in the auto industry (well… save one).
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Elon Musk interviews on CNBC from the Tesla Headquarters in Texas.
CNBC
Elon Musk said Tuesday that artificial intelligence development could run into power generation problems by the middle of next year, as the technology industry builds increasingly large data centers.
Musk told CNBC in an interview that his artificial intelligence startup xAI is planning a gigawatt-size facility outside Memphis, Tenn. He said the facility would be complete in six to nine months. A gigawatt is equivalent to the power capacity of the average nuclear plant in the U.S., according to the Department of Energy.
Musk said AI faces three major limitations as it scales up: chips, transformers and power generation. Transformers are used to ramp down the voltage of electricity produced by power plants so it can used by computers.
“As we solve the transformer shortage, there will be the fundamental electricity generation shortage,” Musk told CNBC’s David Faber. “My guess is people are going to start hitting challenges with power generation maybe by the middle of next year, end of next year.”
Alphabet’s Google unit warned in February that the U.S. is facing a power capacity crisis as the U.S. races against China to achieve dominance in AI. Google started looking into nuclear energy after realizing renewables were potentially causing instability on the grid, said Caroline Golin, Google’s global head of energy market development. The output of wind and solar is dependent on weather conditions.
Google ran into a “very stark reality that we didn’t have enough capacity on the system to power our data centers in the short term and then potentially in the long term,” Golin said at a February conference hosted by the Nuclear Energy Institute in New York City.
Musk said Tuesday that China is building significantly more power generation than U.S. “China power generation looks like a rocket going to orbit and U.S. power generation is flat,” the Tesla CEO said.
Musk’s xAI is using natural gas turbines to help power its Colossus data center in Memphis. Environmental advocates have accused xAI of violating the Clean Air Act and permitting requirements for “major sources of air pollution” by using gas turbines without mitigation technologies or permits in place.
Utilities such as Dominion Energy told investors on recent earnings calls that they are not seeing evidence of slowing data center demand, despite anxiety in the market that the tech sector might cut back on concerns about of a possible recession. Dominion serves the largest data center market in the world located in northern Virginia.
But Constellation Energy cautioned that although demand is strong, some of the forecasts by utilities are overstated as developers shop their data centers in multiple jurisdictions. Constellation is the largest operator of nuclear plants in the U.S.
“I just have to tell you, folks, I think the load is being overstated,” CEO Joe Dominguez said on the power company’s first quarter earnings call. “We need to pump the brakes here.”
Hyundai is shutting down a production line at its Ulsan plant in Korea, where the IONIQ 5 and Kona EV are built. Although it’s only for a few days, the move comes as the automaker faces slower exports.
Why is Hyundai pausing EV production in Korea?
For the third time this year, Hyundai is planning to pause production of some of its most popular EV models in Korea.
Industry sources said on May 20 (via Newsis) that Hyundai will shut down Line 2 at its Ulsan plant in Korea, where it builds the IONIQ 5 and Kona Electric. The pause will start on May 27 and end on May 30.
Despite launching a new discount campaign in Korea earlier this month, offering over $4,300 (6 million won) in savings on the IONIQ 5, sales are still lagging. In particular, Hyundai has exported significantly fewer IONIQ 5 models this year.
Through April, Hyundai exported just 9,663 IONIQ 5s, down from 27,476 sold overseas in the same period last year.
Kona EV exports have also fallen sharply. Through April 2025, Hyundai shipped just 3,428 Kona EV models, down 42% from nearly 6,000 last year.
According to the report, Hyundai said in an internal note, “The sluggish sales in the global electric vehicle market have not improved,” adding, “We have made every effort to secure additional orders, but we are currently unable to secure the quantity.”
Following a temporary halt in February and April, this will be Hyundai’s third time pausing EV production in Korea this year.
In a turn of events, Hyundai’s joint venture in China, Beijing Hyundai, announced losses improved by over 100 million won ($72 million) in Q1. With its first custom-tailored electric SUV launching in China later this year, Beijing Hyundai could turn a profit by the end of 2025.
The Korean automaker reported its seventh consecutive record sales month in the US. The IONIQ 5 remains a top seller with over 12,000 units sold through April, up 14% from last year.
IONIQ 6 sales, on the other hand, are down 10% this year, with 4,424 sold through April, and Hyundai doesn’t give a breakdown for Kona EV sales.
Hyundai is also offering generous discounts in the US right now with up to $12,500 in upfront savings on the new three-row IONIQ 9. The 2025 IONIQ 5 is a steal with leases starting at just $209 per month.
Ready to try out Hyundai’s electric vehicles for yourself? We’ve got you covered. You can use our links below to find popular Hyundai EV models in your area.
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