What's Going On With VinFast Stock Today?

Zinger Key Points
  • VinFast considers delaying $4 billion North Carolina factory amid struggles to attract American consumers, Reuters reports.
  • Despite initial plans for 2024, VinFast's factory operational launch pushed to 2025, with ongoing review processes in Chatham County.

VinFast Auto Ltd. VFS shares are trading slightly lower premarket Wednesday.

The Vietnamese electric car manufacturer is reportedly considering postponing its $4 billion factory in North Carolina due to challenges in appealing to American consumers, Reuters reported, citing source familiar with the situation.

In 2022, VinFast unveiled plans to construct an EV and battery plant in the U.S., boasting an annual capacity of 150,000 vehicles.

The move aimed to leverage the Biden administration’s push for EV subsidies for American-made cars, the report added.

Initially slated for completion in July 2024, the factory’s operational launch was postponed to 2025.

Now, the company contemplates yet another delay, as disclosed by an anonymous source due to the matter’s confidentiality, per Reuters.

VinFast, which sold fewer than 1,000 cars in North America last year, conveyed in a statement to Reuters, “conducting a thorough review and evaluation of all aspects of the construction process for our North Carolina factory.”

Chatham County, where ground was broken for the factory in July, refrained from commenting on potential delays.

A spokesperson for the county mentioned VinFast’s two revisions to the factory’s general assembly building size, with the latest submitted in April under review by the permits department, Reuters added.

When VinFast unveiled its plans in March 2022, U.S. President Joe Biden lauded the project, anticipating over 7,000 job opportunities.

Price Action: VFS shares are trading lower by 1.22% to $4.86 premarket at last check Wednesday.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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