Shares of Vietnamese electric vehicle (EV) producer, Vinfast, witnessed a significant rise of 21% on Monday. This growth is a continuation from last week, catapulting the company’s market valuation to an impressive $160 billion, as reported by Reuters.
The company’s debut on Wall Street earlier this month has been nothing short of remarkable. Within a short span, Vinfast has clinched the title of the world’s third most valuable car manufacturer, trailing only behind industry giants, Tesla and Toyota.
However, it’s essential to note the limited public availability of Vinfast shares. This limitation has made them susceptible to high volatility, swinging over 14% in 11 of the past 12 trading sessions. As of Monday, the shares were projected to contribute nearly $33.6 billion to its market cap, based on a stock price of $83.33.
Vinfast shares have attracted significant attention and have become one of the most watched stocks on Stocktwits, a renowned platform among retail investors.
The company is predominantly controlled by Pham Nhat Vuong, Vietnam’s wealthiest individual and the founder of parent conglomerate Vingroup, owning approximately 99.7% of shares. While market enthusiasm is high, Vinfast has a long journey ahead if it aims to genuinely challenge Tesla and other established automobile giants. Especially considering they are investing billions to secure their position in the EV market.
To put things in perspective, only 137 Vinfast electric vehicles have been registered in the U.S. until June, as per data from S&P Global Mobility. Furthermore, the company is venturing into the U.S. and European markets at a time when the demand for EVs is slowing down and Tesla is engaged in a price war to maintain its dominance.
Vinfast anticipates selling up to 50,000 EVs this year, a figure dwarfed by Tesla’s projection of delivering 1.8 million vehicles. To enhance sales, Vinfast is diverging from Tesla’s direct-to-consumer approach and is partnering with dealers. Moreover, they are investing in a new $4 billion manufacturing plant in North Carolina.