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.