Tesla makes a move on Southeast Asia's largest EV market. A homegrown giant awaits

Tesla is laying the groundwork to enter Vietnam, setting its sights on a fast-growing electric vehicle market where a formidable homegrown rival is already deeply entrenched. The U.S. electric vehicle maker registered a local entity, Tesla Motors Vietnam, this month, according to business registration records, paving the way for a potential expansion into the country. But Tesla would be taking on a homegrown giant. Vietnam became Southeast Asia's largest electric car market in 2025 as sales more than doubled, with EVs accounting for almost 40% of new car sales, according to International Energy Agency data released in May. Nasdaq-listed VinFast has captured 92% of the domestic EV market, according to HSC research .