Vietnamese electric-vehicle maker VinFast Auto has signed a deal in India to invest up to $2 billion and set up an EV plant. Meanwhile, VinFast founder Pham Nhat Vuong will step in as CEO. VFS stock fell early Monday.
VinFast reached a deal with Indian southern state Tamil Nadu, with an initial investment of $500 million. The company aims to start construction of a new EV plant this year. It'll have an annual production capacity of up to 150,000 EVs.
India is a massive potential EV market, but there are questions about infrastructure. The country imposes stiff import duties on autos.
Tesla CEO Elon Musk has held meetings with Indian officials, with reports stating that a deal is close to build a factory in the country. Musk also wants import duties substantially reduced in the near term.
Meanwhile, Vinfast said founder Pham Nhat Vuong will be chief executive officer, replacing Le Thi Thu Thuy, who'll remain chairwoman.
The Vietnamese EV maker will be at CES, unveiling two new models.
VinFast is building a $2 billion plant in North Carolina and aims to have a site in Indonesia.
VFS stock fell 1.7% Monday morning.
VinFast came public in the U.S. last August via a SPAC merger. VFS stock initially skyrocketed, but soon plunged well below initial trading. VinFast stock tumbled 16.1% last week to 7.02.
VinFast is losing money, though sales growth is strong.
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