After Tesla cut prices by as much as 20%, VinFast knew it had to respond to keep up in the burgeoning electric vehicle market.
“As a new brand entering the market, when other brands reduce their prices we have to come up with promotions to ensure VinFast’s competitiveness,” a spokesperson told Axios Raleigh in a statement.
VinFast’s first models, the VF 8 and VF 9, have U.S. starting prices of $59,000 and $83,000, respectively. Meanwhile, Tesla’s basic Model Y is now $52,990, down from $65,990. Furthering VinFast’s troubles, the cars VinFast imports to the U.S. from Vietnam don’t qualify for a $7,500 U.S. federal EV tax credit. Tesla cars do qualify.
The Vietnamese EV company is building a more than 1,700-acre plant in Chatham County that promises to employ 7,500 people and invest more than $4 billion. North Carolina has put a big bet in the success of the company, offering them more than $1 billion in tax incentives, provided they hit job creation goals.
None of that will happen, however, if there’s no demand for VinFast’s cars.
In December, the first 999 vehicles shipped from Vietnam to the Bay Area in California. Many early reservation holders were disappointed, judging by discussions on VinFast’s official community website and other forums.