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Why VinFast Stock Is Rising Today
Actions of electric vehicle (EV) manufacturer VinFast Auto (NASDAQ: VFS) were on the move Monday after the company announced it will offer a new in-car streaming service from Sony — and after the White House said it will sharply increase tariffs on electric vehicles from rival automakers in China.
As of 10:30 a.m. ET, VinFast shares are up about 11% from Friday’s closing price.
VinFast said it will offer a new Sony in-car entertainment service on its VF 8 electric crossover. Image source: VinFast Auto.
A deal with Sony and a move by Biden that could help VinFast
VinFast said Friday night that it will be the first automaker to adopt Sony’s new in-car entertainment service, called RIDEVU. The Vietnamese automaker will offer RIDEVU on its VF 8 electric crossover SUV, the company said. Existing VF 8 owners in the US who register for the service will soon receive it via an over-the-air update.
RIDEVU offers a library of over 2,000 films from the Sony Pictures archives. Movies can be watched on the vehicle’s main screen when it is parked (e.g. while charging) and on mobile devices used by passengers while the car is in motion.
Separately on Friday, The Wall Street Journal reported that the Biden administration is preparing to increase tariffs on clean energy products from China, including electric vehicles. According to the report, tariffs on Chinese-made EVs will increase to about 100% from the current 25% in the government’s plan.
Why China’s Electric Vehicle Tariffs Could Boost VinFast
VinFast manufactures its electric vehicles in Vietnam, where it has roughly similar cost advantages to its Chinese rivals. But because Vietnam is not China, its vehicles will not be affected by the administration’s planned measure – which, if implemented, will likely keep highly regarded Chinese-made electric vehicles from companies like Nio It is Xiaomi out of the US market for now.
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John Rosevear has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Nio. The motley fool has a disclosure policy.
Why VinFast Stock Is Rising Today was originally published by The Motley Fool