Our electric cars can ‘overwhelm’ gasoline cars in the future, even Tesla shares have to fall because of the appearance of VinFast

On April 25, Vingroup (stock code: VIC) held its 2024 Annual General Meeting of Shareholders. At the meeting, the group was questioned about VinFast’s competition with gasoline cars and on the international stage.

Answering this question, Mr. Pham Nhat Vuong, Chairman of Vingroup, said that electric cars will never go out of fashion but will be a sustainable trend. Currently, the world has begun to have new battery technologies and gradually batteries will become cheaper, from there the cost of electricity will also become cheaper, even just on par with gasoline cars.

“Especially with VinFast, we have a battery rental policy. This means we have direct competition with gasoline cars. Currently, VinFast’s battery-less cars are selling at a cheaper price than gasoline cars in the same segment. However, VinFast’s cars are stronger, smarter and have more technology.”Mr. Pham Nhat Vuong shared.

According to Mr. Pham Nhat Vuong, currently the cost of renting a battery or charging an electric vehicle, in short, the energy per kilometer of an electric vehicle can be 40-50% cheaper than a gasoline vehicle. Therefore, it can be said that VinFast electric cars are competing directly with gasoline cars, with lower warranty and maintenance costs.

Not only are they cost-effective, electric vehicles also contribute to environmental protection. “Shareholders just imagine how clean our environment will be if our whole country uses electric cars. Electric cars are an important part of helping big cities become cleaner.”Mr. Pham Nhat Vuong affirmed.

Many people have not yet imagined an environmental story that is directly related to themselves. This billionaire said that nowadays there are more allergies, more respiratory diseases, more cancer… Medical costs have also increased dramatically due to illness and emissions. If Vingroup does not make electric cars now, the future generation of Vietnam will not have a healthy life and good economy. Electric cars will definitely become a trend.

Mr. Vuong also said that Vietnam does not like electric cars because it has not promoted and communicated well about the benefits of electric cars. However, in the coming time, he and Vingroup will promote communication about that.

“I will spend another 10,000 billion to triple the number of charging stations in Vietnam”, said Mr. Pham Nhat Vuong. He also said the increase in the number of stations charger to help people feel secure in buying electric vehicles. Citing a report, this billionaire said that over 90% of people travel less than 100km a day, and VinFast electric cars can run 400km – 500km depending on the vehicle. So charging at home can also meet the needs.

Mr. Pham Nhat Vuong also said that the world’s largest electric car company like Tesla is facing enormous competition, so it is natural for the stock to decrease. The position of leader is always stressful and tiring and very difficult to maintain.

This billionaire also affirmed that VinFast is getting stronger every day. Every day the company has new initiatives to make better, cheaper cars and reduce production costs. Good GSM business is the foundation for VinFast, helping people experience VinFast cars more.

Sharing more about the upcoming plans, Mr. Pham Nhat Vuong said that in June the company will accept orders for VinFast VF3. This car is not only beautiful for housewives, but cool young people can also ride it. However, the price of the car will be very reasonable. This is an A- segment car and creates attractiveness and competition in the market.

This billionaire also shared that VinFast can break EBITDA from 2026, gradually becoming profitable. In some markets, there is also profit but on the basis of 3 nos: No depreciation, no profit, no financial costs. This means that this is the amount of money the company spends on investments, not included in expenses. Gradually, the company will calculate these costs into the car price. Cash flow will be positive from 2026.

Making electric cars has many difficulties and is completely different from gasoline cars. Electric vehicles are a combination of multiple pieces of software that run together. Many companies cannot make electric cars or produce them for a long time because those 40 computers don’t talk to each other. Just one glass difference is already very different.