The value of Vietnam’s VinFast has overtaken that of Detroit’s “big three” automakers after the company’s shares skyrocketed on their first trading day on Nasdaq.
On Tuesday, VinFast closed at $37.06 in New York, significantly over the $10 price agreed upon when the carmaker merged with a special purpose acquisition company (Black Spade Acquisition) to obtain a stock market listing. Its market capitalization surpassed $85 billion, at least $27 billion more than Ford, General Motors, and Stellantis. Black Spade had initially valued the Vietnamese carmaker at US$23 billion.
Related: VinFast Receives 3,000 Orders for VF5 Plus EV Within 9 Hours
The listing added around $39 billion to the wealth of VinFast’s chairman and founder Pham Nhat Vuong, who was already Vietnam’s richest man. Regulatory filings show he controls 99% of the firm’s outstanding shares, mostly through Vietnam’s largest conglomerate, Vingroup JSC. However, this reduces the number of shares available for other investors to trade, which might result in big price shifts.
The emerging Vietnamese automaker, which is barely 5 years old, has already ceased production of ICE (internal combustion engine) automobiles in order to focus only on producing fully electric vehicles. It recently stepped into the North American markets and shipped its first batch of vehicles to the USA in November last year.
Related: Vietnam’s VinFast Ships First Batch of EVs to American Customers
VinFast has also announced the location of its first North American EV production factory, which will be located in Chatham County, North Carolina, and will start manufacturing the VF8 and VF9 electric SUVs beginning in July 2024. However, there is still a long & challenging way to go. In the first half of the year, VinFast delivered 11,300 EVs, according to a company presentation. By comparison, Tesla delivered more than 889,000 vehicles in the same period.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
