All eyes are on Vietnamese electric vehicle (EV) company VinFast, as it has filed a registration statement to become a publicly traded entity in the U.S. The company began producing traditional internal combustion engine ( ) vehicles in 2019, cementing itself as Vietnam’s first domestic automaker, but has since transitioned to solely producing EVs. Once an initial public offering ( ) receives approval from the U.S. Securities and Exchange Commission , VinFast will trade on the Nasdaq exchange with the ticker VFS. The company has not yet disclosed the amount it plans to raise.
VinFast operates as a unit of Vingroup, Vietnam’s largest conglomerate. Last year, the company pulled in revenue of $5.4 billion.
VinFast currently has reservations open for two electric SUVs, the VF8 and VF9. Prices for the VF8 start at $57,000, while the VF9 starts at $76,000. Both EVs can be ordered without batteries and with a battery subscription program with a starting price of $42,000 for the VF8 and a price of $57,500 for the VF9. Monthly battery subscription charges are $169 for the VF8 and $219 for the VF9.
As of Sept. 30, VinFast boasted a total of 58,000 global reservations for the two models. As of August, the company had almost 8,000 reservations from U.S. customers. Deliveries for the two models in the U.S. are expected to begin before the end of the year.
Could VinFast Be the Next Tesla?
In March, the company announced that it had signed a preliminary deal to invest $2 billion toward a manufacturing plant in North Carolina. Construction is expected to be completed by July 2024 with an initial annual capacity of 150,000 units.
VinFast currently manufactures EVs at its plant in Haiphong, Vietnam. The plant has the capacity to produce 250,000 units per year. By 2026, that figure is expected to jump to 600,000 units.
The encouraging plans have led some investors to speculate that VinFast could become the next Tesla (NASDAQ:TSLA). It’s entirely too early to come to this conclusion, as the company is still light years away from becoming a legitimate competitor to the EV leader. Last year, VinFast reported losing $1.3 billion. In the first three quarters of 2022, the company has lost an additional $1.4 billion. Meanwhile, Tesla is a globally recognized brand that reported net income of $3.33 billion during the third quarter alone.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.