The ambitious American retail dreams of Vietnamese electric vehicle startup VinFast are rapidly receding, with the company now left with fewer than two dozen dealerships across the United States.
A Shrinking Retail Footprint
According to a report by Automotive News, only 17 VinFast dealerships currently list cars for purchase on their websites. This stark figure stands in dramatic contrast to the company's original vision of establishing a network of hundreds of franchised stores. So far in 2024, two outlets have already closed their doors, with a third scheduled to cease operations by the end of 2025.
VinFast's story is the latest in a series of electric vehicle hopefuls buckling under the pressure of high expectations. The company initially captivated investors with a pitch to sell a comprehensive lineup of EVs in the US, including a small pickup truck. Following Tesla's remarkable success, a wave of investment flooded in, briefly propelling VinFast's market valuation to over $65 billion in 2023—a figure that momentarily eclipsed American giants Ford and General Motors.
Failed Promise and Falling Sales
However, the reality for American consumers fell short. Instead of a full range, only two models arrived: the $40,000 VF 8 and the $63,000 three-row VF 9. This limited, premium-priced offering failed to ignite significant buyer interest. Consequently, US sales have sharply declined, with just 1,413 vehicles sold so far this year—a drop of 57 percent compared to the same period last year.
Karl Brauer, executive analyst at iSeeCars.com, highlighted the immense challenge, telling Auto News, 'The US is one of the hardest markets to crack because we've got so many automakers already. This is like a 20-year, 30-year investment if you're serious about the market.'
A Global Contrast and a Crowded Graveyard
VinFast's US struggles present a stark contrast to its performance elsewhere. In its home market of Vietnam, where it offers six models, the company launched in 2017 and has swiftly risen to become the nation's top carmaker, celebrating its 100,000th vehicle sale in October. It is also expanding in Europe, with new dealerships planned for France, Germany, and the Netherlands. The brand even secured a high-profile partnership with football superstar David Beckham back in 2018.
Yet, this momentum has not translated stateside. VinFast joins a growing list of EV startups that have faltered. The sector's 'graveyard' recently expanded with the closure of Bollinger Motors, while Nikola Motors shut down fully in February. Fisker Inc. ceased operations in 2024, and Lordstown ended production in 2023.
Analysts note a critical strategic misstep by many of these companies: an excessive focus on large electric pickup trucks and SUVs. While popular, these vehicle types face unique EV challenges:
- Towing heavy loads drastically reduces battery range.
- Their substantial weight can cause issues on soft terrain like construction sites.
- Cold weather in northern states severely impacts battery efficiency.
Only a few, like Rivian and Lucid, with differentiated product pitches, have managed to endure. Rivian's CEO, RJ Scaringe, noted that many of their pickup customers were trading in sports cars, not traditional work trucks like the Ford F-150.
As the market corrects, a clear pivot is underway. Major automakers are now focusing on smaller, more affordable electric models. Nissan has rebooted the Leaf, Toyota and Ford are developing $30,000-$35,000 competitors, and Rivian plans a $45,000 entry-level R2. VinFast, meanwhile, did not immediately respond to a request for comment on its dwindling US presence.
