Tesla registered a local entity, Tesla Motors Vietnam, this month, aiming to tap into Vietnam's fast-growing electric vehicle market. Vietnam became Southeast Asia's largest EV market in 2025, with sales more than doubling and EVs accounting for almost 40% of new car sales. However, local rival VinFast holds a dominant 92% share of the domestic EV market, supported by its parent Vingroup's extensive charging infrastructure and consumer ecosystem. Analysts suggest Tesla's Model 3 and Model Y could target premium buyers initially, but the company will need to build out distribution, service, and charging networks to compete effectively.