Rosalind Evans
Vietnam’s prominent car manufacturer, VinFast, has made a resounding entrance onto Wall Street. This arrival has catapulted its market valuation, eclipsing heavyweights like Volkswagen and Ford.
VinFast, specializing in electric vehicles, marked its vibrant New York debut this Tuesday, post a merger with a special purpose acquisition firm, Black Spade Acquisition Co.
On the Nasdaq, the stock of this merged entity surged an impressive 270% during its inaugural trading day, opening at $22 from a starting price of $10 and sealing the day at $37 per share.
This spike drove VinFast’s market cap past $85 billion. This figure dwarfs Volkswagen’s 63.9 billion euros ($69.7 billion) and Ford’s $48 billion valuations, as stated by Refinitiv.
Yet, this astounding rally was realized on a thin trading volume. VinFast largely remains under the ownership of Vietnam’s wealthiest individual, Pham Nhat Vuong. He holds 99% of its stake through his principal firm Vingroup and other business structures, as mentioned in a regulatory document.
Vuong, presiding as the chairman for both Vingroup and VinFast, witnessed his personal wealth skyrocket by nearly $39 billion on Tuesday, with the carmaker’s stock ascent. Bloomberg Billionaires Index now approximates his net worth at about $44.3 billion.
Established in 2017, VinFast emerged as a Vingroup offshoot. They produce electric SUVs, scooters, and buses catering to both the Vietnamese and North American markets.
After the performance, VinFast takes the crown as the top US-listed Vietnamese firm in terms of market cap.
CEO Thuy Le shared, “VinFast’s listing will hopefully pave the way for more Vietnamese enterprises to make global strides.”
Mixed US Feedback
While VinFast has released four EV models and achieved nearly 19,000 deliveries, it’s essential to contrast this with Volkswagen’s 4.4 million sales in just 2023’s first half, of which over 321,000 were electric.
In Vietnam, VinFast’s cars dominate the charts, boasting expansive charging infrastructure across over 60 urban and provincial areas.
However, their US market penetration, which started this year, hasn’t been as triumphant. Recent critiques have cast shadows on the VF 8 electric SUV after media test drives.
Reactions ranged from Road & Track’s sharp “simply unacceptable” to a more lenient outlook emphasizing the car’s debutant status in the US.
Earlier this week, VinFast revealed software enhancements, a nod to feedback from both customers and auto critics.
Unveiling its worldwide vision, VinFast inaugurated a North Carolina plant in July, projecting it as their US sales anchor. They anticipate the factory might produce up to 150,000 vehicles annually.
Europe too is on their radar, with plans to penetrate the market “soon.”
CEO Le hinted that the fresh capital influx from the listing will energize their expansion, providing them “greater access to capital avenues for future growth.”
Currently, VinFast is yet to see profits, having reported a $1.4 billion loss for the nine months ending last September. They also held a debt nearing $2.5 billion by September’s close, as per official records.
VinFast’s meteoric rise on Wall Street symbolizes the dynamic shifts occurring within the global automotive industry. Traditional giants are now competing with new entrants, especially from regions not previously recognized for auto manufacturing dominance. As VinFast navigates both praise and critique, its journey epitomizes the challenges and opportunities faced by emergent electric vehicle brands in an increasingly eco-conscious world. Time will tell if they can sustain this momentum and truly revolutionize the EV landscape.
