Vietnamese EV Maker VinFast's New Journey: Inks Five Dealerships To Fuel Sales In US
Portfolio Pulse from Shivani Kumaresan
VinFast Auto Ltd (NASDAQ:VFS), a Vietnamese EV maker, has signed agreements with five dealerships in the U.S. to sell its electric vehicles, starting with the VF 8 SUV. The company plans to expand its U.S. dealer network to 125 locations and currently operates 13 stores in California. Despite this expansion, VFS shares dropped by 4.78% to $7.97 in premarket trading.
January 02, 2024 | 1:52 pm
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VinFast Auto Ltd has expanded its U.S. dealership network, a move that could boost sales, but shares fell 4.78% in premarket trading.
The dealership agreements indicate a positive expansion strategy for VinFast, which could lead to increased sales and market penetration in the U.S. However, the immediate market reaction was negative, with a 4.78% drop in premarket trading. This could be due to investor concerns about the costs of expansion or skepticism about the company's growth prospects in the competitive U.S. EV market.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100