Vietnamese electric vehicle maker VinFast said on Wednesday it will open its first dealership in San Diego, California, this month as it shifts toward a dealer-based sales model to boost U.S. performance. The move follows sluggish demand and growing pressure from tariffs and intensifying competition in the U.S. market.
Backed by Vingroup (VIC.HM), Vietnam’s largest conglomerate, VinFast initially pursued a direct-to-consumer strategy, mirroring Tesla’s approach. However, slow progress and regulatory headwinds—including new U.S. tariffs—have prompted the company to pivot. In addition to the San Diego store, VinFast said it is actively exploring more dealership locations across California.
The EV maker is also expanding its product line, with plans to introduce an electric bus in the U.S. Meanwhile, it is scaling back operations in North America by closing select showrooms and shifting more focus to Asian markets, including Indonesia and India.
The dealership announcement comes shortly after VinFast reported a wider-than-expected net loss of $712.4 million for the first quarter—its sixth consecutive quarterly loss. While the loss narrowed from the previous quarter’s $1.3 billion, it was still 20% higher than the same period a year ago and exceeded analyst expectations of a $616.3 million loss, according to LSEG data.
Despite the setback, revenue surged 150% year-over-year to $656.5 million, beating estimates of $520 million. Deliveries rose nearly 300% to 36,330 vehicles, driven largely by domestic sales in Vietnam. Shares of VinFast rose over 10% in pre-market trading following the financial update.