Vietnamese electric car company VinFast went public this week, listing on the NASDAQ stock exchange under the ticker symbol VFS. Shortly after going public, VinFast shares rocketed in value, climbing 255 percent on Tuesday. Now, however, share value has dropped significantly over the last few days, erasing over half of that 255-percent gain. Nevertheless, VinFast’s market cap is still higher than that of General Motors.
According to a recent report from Bloomberg, VinFast has a market cap of $46.4 billion. GM’s market cap is currently set at $45.3. Chairman and founder Pham Nhat Vuong controls 99 percent of VinFast stock, primarily through the Vingroup JSC business conglomerate. However, this means that small transactions can have a major impact on the stock price.
The drop in stock value over the last few days has resulted in Vuong’s net worth to fall roughly 40 percent, down to $26.2 billion, per the Bloomberg Billionaires Index. On paper, Vuong gained nearly $40 billion on the first day of trading, one of the largest wealth jumps ever recorded on the index. Despite the decline in value for VinFast stock, Vuong remains significantly wealthier than prior to the company going public, as the index did not account for Vuong’s stake until the company had completed its merger with SPAC Black Spade Acquisition Co.
VinFast aims to sell 50,000 all-electric vehicles over the course of the 2023 calendar year. However, in order to reach that goal, VinFast will need to significantly accelerate its sales pace, as roughly 16,000 units have sold between January and July of 2023. VinFast aims to mirror Tesla’s direct sales model with company showrooms, rather than via dealerships.
The only VinFast model currently available in the U.S. is the VF8, a two-row, five-seater SUV that is more expensive than the Tesla Model Y. Only 137 units of the VF8 have sold this year. VinFast currently only operates factories in Vietnam, but has also broken ground on a new facility in North Carolina, with plans to ramp up production in 2025.
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Comments
That’s great and all, but it really has zero to do with GM. They are not partners or anything.
“GM entered a strategic partnership with Vinfast in 2018 that made Vinfast the exclusive distributor of Chevy vehicles in Vietnam. Additionally, the Chevy Spark Activ is currently sold under the Vinfast banner in Vietnam as the Fadil and is produced at the former GM plant in Hanoi.”
https://gmauthority.com/blog/2021/01/vinfast-to-rival-gm-with-three-north-america-bound-ev-crossovers/
You should actually look into that though. What they did was walk away from Vietnam and hand the entire operation to Vinfast, factories, brand and all.
Who then promptly sold off the rest of the inventory and shut it down. They haven’t posted anything to the Chevrolet site in Vietnam since 2019.
That AWFUL name sounds more like a Carfax knock-off vehicle history website than a “car company”.
Actually sounds like a expediting service for Wine….
It was an IPO Pump and Dump, which I think should be illegal.
I have to laugh at all the stupid investors that will lose all their money in these new EV Companies.
Vinfast was started by a huge conglomerate, and didn’t start out as an EV company.
Now, I’m not defending their cars. I’ve heard nothing but pretty bad things about them, but it isn’t quite as simple as a story about an EV startup.
I doubt that the big 3 are worried about this company,see what happened to Daewoo.Flash in the pan companies come and go and the duped consumer takes it in the shorts.
“see what happened to Daewoo”
You think GM will buy them and turn them into GM Vietnam?
Anyway, that doesn’t seem likely with Vingroup being such a massive conglomerate.