VinFast is quickly expanding its brand as demand for electric vehicles continues soaring. However, with Tesla’s aggressive price cuts, will the EV maker be able to keep up? To remain competitive, VinFast said it would introduce new promotions Tuesday.
VinFast to offer promotions to compete with Tesla
Tesla initiated significant price cuts in the US last week of up to $13,000 (20% off) on the Model 3 and Model Y models, sending ripples throughout the EV market.
Although the company claimed the discounts were because of “partial normalization of cost inflation,” most agree it was to stimulate demand. And so far, it’s working.
A few days ago, Electrek reported Tesla is seeing “unprecedented demand” as buyers are taking advantage of the promotions. Tesla did the same in China and saw similar results as EV makers in the region, like Xpeng, also cut prices to compete.
Analysts claimed Tesla’s price cuts in China would “create a negative spillover effect” where local EV brands will face significant cancellations. It seems the same may be happening in the US.
VinFast, a Vietnamese EV maker, shipped its first batch of VF8 models to the US in November and, a week later, began filing paperwork to hold an IPO and go public on the US markets to expand its brand.
For a newcomer like VinFast, hoping to expand its presence, major discounts from the leading EV maker (Tesla) can throw off the competitive balance. Especially when VinFast’s prices are now higher.
The VF8 starts at $59,000, according to the automaker’s website, while the VF9 full-size SUV starts at $83,000. With Tesla’s new pricing, its most basic Model Y is offered at $52,990.
Top comment by Actually Thoughtful
I'd say, as a complete unknown with a non-compelling product, they would need to be at least $10k lower than a similar Tesla to get much interest. They are massively overpriced at this moment.
Meanwhile, the Model Y has an EPA estimated range of 330 miles compared to the VF8 at 179 miles. Vinfast said in a statement:
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.
Vinfast added, “We are considering many promotion programs and will announce soon,” though it’s unclear whether the promotions include price cuts like Tesla.
We’ve reached out to VinFast for further clarification on the promotions and will keep you updated when we hear back.
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