Vietnamese automaker VinFast Global said on Tuesday it plans to invest up to $2 billion to build an electric vehicle factory in North Carolina.

What Happened: Construction for the first phase of the factory which will make electric cars, electric buses and EV batteries will begin this year, and production is expected to begin in July 2024. 

The capacity of phase 1 is expected to be 150,000 vehicles per year. 

The factory plans to make VinFast VF 9, a seven-seater electric SUV, and the VinFast VF 8, a five-seater electric mid-size SUV.

See Also: This Vietnamese EV Maker Run By A Former Volkswagen Exec Is Eyeing To Take On Tesla Next Year In US Market

Why It Matters: VinFast, which has an assembly plant in Vietnam and is building a battery plant there, would compete in a market led by Tesla Inc (NASDAQ: TSLA).

The automaker plans to begin selling its EVs in the U.S. by the end of this year. It said it would accept pre-bookings for its upcoming VF e35 and VF e36 electric SUVs in the first half of 2022 and reportedly aims to sell 15,000 EVs globally next year.

Vinfast already has an office in California and seeks to open 60 U.S. showrooms next year, but is targeting to sell a bulk of its EVs online.

Late last year, Michael Lohscheller stepped down from his post as the CEO of VinFast just months after joining the company. He has now joined Nikola Corp (NASDAQ: NKLA).

Price Action: Tesla stock closed 0.7% higher at $1,099.6 a share on Tuesday.

Photo courtesy: VinFast