EV maker which received largest ever NC tax subsidy has lost $5 billion since 2021

by WorldTribune Staff, October 9, 2023

VinFast, a Vietnamese company that was gifted the largest tax subsidy in North Carolina history to build a manufacturing plant in the Tar Heel state, lost over $600 million just this summer and over $5 billion since 2021.

The VinFast VF8 City Edition SUV has been described as ‘sickness-inducing.’

The initial public offering for VinFast on the Nasdaq briefly made the company the third-most valuable automaker, behind Tesla and Toyota, with a share price of $93 and a market cap of more than $200 billion. Share prices have since dropped off by more than 90%, putting the company’s shares at $8.14 on Friday.

An earnings report released last week shows VinFast’s revenue from the second quarter at $342.7 million. Net losses rose by 20% to $622.9 million, putting the company on track to post its biggest yearly loss in the last three years, Just the News noted in an Oct. 8 report.

In the third quarter of 2023, VinFast delivered 10,027 electric vehicles, an increase of 5.2% from the 9,535 delivered the prior quarter. About 60% of those deliveries went to Green and Smart Mobility, a rental and taxi company owned by VinFast’s parent organization, Vingroup.

VinFast was forced to recall all 999 vehicles sent to the United States in May, just weeks after reviews described its $50,000-plus VF8 City Edition SUV as “sickness-inducing,” “terrible,” “sloppy,” and “borderline uncontrollable.”

Automotive data provider S&P Global Mobility reports only 137 VF8s have been registered in the U.S. through the first half of 2023.

VinFast had a groundbreaking in late July at the company’s first facility outside of Vietnam in North Carolina’s Chatham County, where VinFast is expected to start production by 2025 after postponing the launch by a year, Just the News reported.

The $4 billion facility is funded in part by taxpayers “to lead the EV revolution” through a state incentive package that could reach $854 million over 32 years if the company achieves its investment and hiring goals, which include 7,500 jobs at the plant by 2027. Chatham County is expected to contribute another roughly $400 million.

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