BNR – Shares of Vinfast, a prominent Vietnamese electric vehicle manufacturer, experienced a remarkable surge of 21% on Monday.
This surge amplified a rally that had quadrupled its market value to an impressive $160 billion in just one week.
Vinfast Becomes Third-Most Valuable Automaker Globally
Vinfast recently made a resounding debut on Wall Street, and its valuation has swiftly catapulted. This has propelled it to the ranks of the third-most valuable automaker globally, trailing behind industry giants Tesla and Toyota.
Despite its remarkable growth, Vinfast’s limited availability of publicly traded shares has rendered the stock susceptible to considerable volatility. Throughout the past 12 sessions, the company’s shares have witnessed fluctuations exceeding 14%, alternating between surges and declines.
Based on a share price of $83.33, the stock was positioned to augment its market capitalisation by nearly $33.6 billion. This would bolster the company as a significant player in the EV market.
The attention around Vinfast’s shares has made them one of the most closely observed assets on Stocktwits. It is a favoured platform among retail investors seeking to gauge market trends.
However, VinFast’s operations remain predominantly under the control of Vietnam’s wealthiest individual, Pham Nhat Vuong. He also founded the conglomerate Vingroup and holds an approximate stake of 99.7% in Vinfast.
Despite the surge in market value, Vinfast faces substantial hurdles on its path to challenging Tesla and other automakers. While enthusiasm abounds, the company registered only 137 EVs in the United States through June, according to S&P Global Mobility.
Furthermore, Vinfast is entering the US and European markets amid sluggish demand for electric vehicles.
The sluggish demand is a result of Tesla’s aggressive pricing strategy to uphold its dominant market share.
In comparison to Tesla’s projected delivery of 1.8 million cars, Vinfast aims to sell nearly 50,000 electric vehicles this year.
To invigorate sales, the company is diverging from Tesla’s direct-to-consumer model and is embracing dealership channels. Additionally, Vinfast is investing in a substantial $4 billion manufacturing facility situated in North Carolina, which highlights its ambitions.