Actions of manufacturer of electric vehicles (EV) VinFast Auto (NASDAQ:VFS) were on the move Monday after the company announced it would offer a new in-car streaming service starting Sony — and after the White House announced it would sharply increase tariffs on electric vehicles from competing automakers in China.
As of 10:30 a.m. ET, shares of VinFast were up about 11% from Friday’s closing price.
A Sony deal and a Biden decision that could help VinFast
VinFast announced Friday evening 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 US VF 8 owners who sign up for the service will soon receive it via an over-the-air update.
RIDEVU offers a library of more than 2,000 films from the Sony Pictures archives. Movies can be viewed on the vehicle’s main screen when parked (for example, when charging) and on mobile devices used by passengers when the car is in motion.
Separately on Friday, The Wall Street Journal reported that the Biden administration is preparing to raise tariffs on clean energy products from China, including electric vehicles. According to the report, tariffs on Chinese-made electric vehicles will increase to about 100% from the current 25% under the administration’s plan.
Why tariffs on Chinese electric vehicles could boost VinFast
VinFast manufactures its electric vehicles in Vietnam, where it has roughly similar cost advantages to its Chinese competitors. But because Vietnam is not China, its vehicles will not be affected by the administration’s planned decision – which, if implemented, is likely to keep the highly regarded Chinese-made electric vehicles from China. companies like Nio And Xiaomi out of the US market for the moment.
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John Rosevear has no position in any of the stocks mentioned. The Motley Fool posts and recommends Nio. The Motley Fool has a disclosure policy.
Why VinFast Stock Is Rising Today was originally published by The Motley Fool
