Vietnam is VinFast’s biggest market. Tesla’s entry would increase competition for the home player.

  • Tesla has formed a Vietnamese subsidiary in Ho Chi Minh City.
  • The company is authorized to wholesale and retail automobiles and motor vehicles, sell parts and accessories, and handle related import, export, and distribution. 
  • A company registration is not the same as starting sales.

Shares of Vietnamese EV maker VinFast Auto Ltd (VFS) slumped 2% on Monday after American rival Tesla (TSLA) established a unit in the Southeast Asian country that could sell its vehicles.

Vietnam is VinFast’s biggest market. Tesla’s entry into the country would increase competition for the home player.  

Tesla’s New Unit

Tesla has formed a Vietnamese subsidiary in Ho Chi Minh City, according to a newly posted record on the country’s National Business Registration Portal — a legal first step into a market where the company still has no official stores, service centers, or Superchargers.

The entity is listed as Tesla Motors Vietnam Limited Liability Company. Charter capital is 77.667 billion dong, or about $3 million. The company is authorized to wholesale and retail automobiles and motor vehicles, sell parts and accessories, and handle related import, export, and distribution, subject to Vietnam’s rules on foreign-invested traders.

A company registration is not the same as starting sales. Tesla has not named models, prices, showrooms, service sites, or a charging plan for Vietnam. The company website also doesn’t list Vietnam among the Asia Pacific countries where it sells vehicles.

Why Investors Care

VinFast is the dominant car brand in Vietnam, and its home market still accounts for almost all of the company’s sales and revenue. In 2025, the company delivered 175,099 EVs in Vietnam, a record for any brand in the country, accounting for 89% of the company’s overall sales. VinFast's 2025 passenger-car share was about 36%.

For full-year 2025, VinFast reported about VND 90.2 trillion in revenue, of which VND 80.4 trillion was from Vietnam.

How Did VFS Retail Traders React?

On Stocktwits, retail sentiment around VFS rose from ‘neutral’ to ‘bullish’ over the past 24 hours, while message volume remained at normal levels.

VFS stock has fallen 6 % year-to-date, while TSLA has lost 20%. 

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