VinFast (NASDAQ:VFS) stock is up about 4% today on news that the Vietnamese electric vehicle (EV) maker has signed agreements with 12 new dealers across the United States. VinFast now has contracts with 18 third-party dealerships in seven states.

Here’s what investors should know as shares climb today.

VinFast’s Strategy and Dealer Partnerships

The EV maker’s new alliances announced today are “set to commence operations this month.” In the wake of the latest partnerships, dealers in Connecticut, Florida, Kansas, Kentucky, North Carolina, New York and Texas will now be selling VinFast EVs.

“Leveraging the network of stores, market experience, and capabilities of leading US dealers, VinFast will quickly deliver high-quality, competitively priced electric vehicles to consumers, along with outstanding after-sales policies,” said VinFast U.S. Vice President of Sales and Marketing David Duncan, per Investing.com.

VinFast, which also has 15 of its own sales outlets in California, decided late last year to make agreements with separate dealers in addition to selling EVs itself. The new “capital-light hybrid model” strategy will enable the company to lower its capital expenditures while simultaneously allowing it to sell EVs across more geographic areas.

As part of its sales strategy, VinFast is trying to entice U.S. consumers with a “10-year/125,000-mile warranty” and a “10-year unlimited mileage warranty.” Also noteworthy, VinFast is working to incorporate StoreDot fast-charging batteries in its EVs.

The Price Action of VFS Stock

Over the last five trading days, shares of VFS stock have dropped 7%. VFS stock is also down 45% in the past one month.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines