© Reuters. VinFast challenges Tesla with premium vehicles at discounted prices
Benzinga – The Vietnamese car manufacturer VinFast proposes to begin construction on its electric vehicle factory in North Carolina, with groundbreaking expected to begin soon.
The 1,800-acre facility will be able to produce up to 150,000 vehicles annually in Phase 1 and will likely begin operations in 2025, VinFast CEO Le Thi Thu Thuy quoted CNBC as reporting.
VinFast sees potential in the US EV market due to increased demand for EVs and supporting regulations.
The company has secured $1.2 billion in incentives from the state of North Carolina for the project. VinFast believes there is room for new producers in the United States, especially with high quality products.
Electric cars manufactured at VinFast’s facility could qualify for US tax credits of up to $7,500, giving them a competitive edge.
VinFast aims to provide high-quality products at affordable prices, with vehicles ranging from small city cars starting at $12,000 up to three-row-seat SUVs like the VF 9, which start at around $85,000 per model. Echo. A Model X of Tesla (NASDAQ:) Inc (:TSLA) costs about $100,000.
The company’s US expansion is vulnerable to delayed shipments and software problems, but it remains true to its strategy.
VinFast aims for public listing through a merger of a special purpose acquisition company (SPAC) with the merger with Black Spade Acquisition Co (NYSE:BSAQ).
Price movement
BSAQ shares fell 0.10% to $10.27 in the last check on Friday.
Read the article also in Benzinga Italy