VinFast, the Vietnamese electric vehicle manufacturer that made waves with its recent momentous entry into the Wall Street arena, witnessed yet another astonishing surge in its stock prices on Tuesday. The company’s shares more than doubled in value, experiencing an impressive 109% leap to conclude the trading day at an impressive $36.7. This remarkable upswing was fueled by a surge of interest from individual investors drawn to the emerging automaker’s potential.
The meteoric rise in VinFast’s share prices not only signifies the growing appeal of the startup within the investment community but also positions the company advantageously to secure additional capital from eager investors. VinFast’s CEO, Thuy Le, disclosed that the company was actively exploring avenues to harness this momentum for further financial growth.
After a single day of trading on the Nasdaq exchange, VinFast’s shares skyrocketed by over 250%, conferring a valuation that places it above the valuations of more established automakers, at least in terms of paper worth. Presently valued at an astonishing $85 billion, VinFast’s market capitalization significantly outpaces industry titans like Volkswagen and Ford, a feat made all the more remarkable by the fact that the company’s car production remains relatively limited.
VinFast’s stock, symbolized by the code ‘VFS’, is renowned for its potential to exhibit extreme volatility, attributable in part to the 1% ownership maintained by its founder, Pham Nhat Vuong – who coincidentally stands as Vietnam’s wealthiest individual. Nonetheless, CEO Thuy Le anticipates heightened market liquidity in the near future, as the remaining 99% of shares are poised to become available for trading in the coming months.
Le expressed her team’s exuberance over the enthusiastic market response, deeming it a testament to their competence. She stated, “We think the markets recognize our competency.” This confidence is underscored by the company’s 2022 performance, during which VinFast successfully sold 24,000 vehicles on a global scale, despite facing competition from industry giants like Volkswagen Group and Ford, who delivered 8.3 million and 4.2 million vehicles respectively.
VinFast’s prominence extends to the digital realm as well. The company has rapidly emerged as a focal point of interest on Stocktwits, a social media platform designed for investors. Furthermore, Vingroup, the conglomerate led by billionaire chairman Pham Nhat Vuong, has committed a substantial $2.5 billion, potentially paving the path to profitability, a fact disclosed by Le herself.
Although VinFast is still in its early stages of global expansion, its ambitions extend beyond its Vietnamese origins. The company is set to establish a new manufacturing facility in North Carolina, signaling its intentions to capture the US market. Moreover, the startup has its sights on launching operations in the Asia-Pacific and Middle East regions, underscoring its determination to challenge industry giants on a global scale.
In a bold move, VinFast appears undaunted by the prospect of competing with established industry giants, including the likes of Tesla. CEO Thuy Le asserted that the decision to enter the US market was driven precisely by the aspiration to challenge Tesla’s dominance. As VinFast navigates these uncharted waters, its impressive debut on Wall Street is just the beginning, setting the stage for a future that will undoubtedly be closely monitored in the days and months to come. With a mere six years since its inception, VinFast has proven itself as a force to be reckoned with in the dynamic electric vehicle landscape, captivating investors and industry experts alike with its remarkable rise and ambitious global expansion plans.
Source: CNN
