VinFast plans to respond to Tesla's price cuts with promotions of its own

Tesla cut its prices in key markets like the US, EU, and China last week, with discounts up to 20%. Obviously, competitors can't just stand still and not react to this move, and VinFast is among the first to acknowledge preparing a strategy on the matter.

The Vietnamese company which already sells its EVs in the US and Europe is indeed planning a response to Tesla's aggressive price cuts. VinFast will launch promotions of its own to protect the market competitiveness of its models, Reuters reports.

VinFast's VF8 starts at $59,000 in the US, while its 7-passenger VF9 will set you back $83,000 and up currently. Those models are soon to be joined by the VF6 and VF7, prices for which haven't been announced yet. Tesla's Model Y entry-level SUV starts at $52,990, down from $65,990 before last week. So clearly, VinFast needs to do some price trimming of its own if it wants to compete, or at least offer some other perks.

A VinFast spokesperson put it like this: "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. We are considering many promotion programmes and will announce soon".

The first 999 VinFast EVs shipped to the US in November, and will be delivered to customers this month. Globally, the brand has already secured 65,000 orders, and wants to sell 750,000 EVs per year by 2026. To aid in that goal, it's planning to build a plant in North Carolina, for which it's currently awaiting final regulatory approval from local officials.