Tesla Expands Into Vietnam Amid Intensifying Competition in China
Tesla Inc. (NASDAQ:TSLA) has established a local subsidiary, Tesla Motors Vietnam, to import and sell vehicles as it expands into the Vietnamese market. This move comes amid declining market share for Tesla in China's battery-electric vehicle sector, where its retail sales dropped by 12.4% year over year in August. The company’s Shanghai factory saw increased production, with more than half of output exported during Q2 2026. Tesla will face strong local competition from VinFast Auto Ltd. (NASDAQ:VFS), Vietnam's leading EV manufacturer and a subsidiary of Vingroup led by billionaire Pham Nhat Vuong. In August alone, VinFast delivered over 20,000 electric vehicles in the country. Vietnamese authorities have positioned their market as one of Southeast Asia’s fastest-growing for EVs. Market expectations suggest Tesla may see a year-over-year decline in deliveries this quarter despite anticipated improvements from Q2's performance. Traders on Kalshi currently assign less than even odds to Tesla exceeding 495,000 vehicle deliveries.
Topics: EV market competition Tesla Vietnam expansion VinFast