The price of VinFast shares climbed 21% on Monday (August 28, 2023), continuing the upward momentum from last week and quadrupling the Vietnamese carmaker’s market value to USD160 billion (around RM743.8 billion).
The company was first listed on the Nasdaq on August 15, and after an initial slump, its share (VFS stock code) price has progressively increased. According to Reuters, VinFast is the world’s third most valuable automaker in terms of market valuation behind Tesla and Toyota.
However, VinFast’s small amount of publicly available shares has made the stock prone to volatility, with shares rising and dropping more than 14% in 11 of the past 12 trading sessions. The company is almost entirely controlled by Pham Nhat Vuong, Vietnam’s richest man and founder of VinFast’s parent company Vingroup, with a stake of about 99.7%.
Despite its considerable market value, VinFast is facing strong competition in the electric vehicle (EV) space, which includes Tesla and other legacy automakers that are heavily investing to gain ground in the EV market. Through June, only 137 VinFast EVs were registered in the United States based on data from S&P Global Mobility.
At present, the Vietnamese automaker sells the VF8 and VF9 in the US, with both models also set to go on sale in Europe. These will be joined by the VF6 and VF7 in the future. VinFast expects to sell around 50,000 EVs this year, which is a drop in the bucket compared to Tesla’s projection to deliver 1.8 million cars.
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