Vietnamese electric vehicle maker VinFast experienced a 30% surge in premarket trading, adding to the rally that has quadrupled its market value to $160 billion.
- VinFast made a successful debut on Wall Street, quickly becoming the third most valuable car maker, trailing only Tesla and Toyota.
- The limited availability of VinFast shares has contributed to stock volatility, with significant jumps or slumps occurring in 11 out of the past 12 sessions.
- Based on the premarket share price of $90.55, the stock was expected to increase its market capitalization by nearly $50 billion, surpassing the valuations of major US car makers Ford and General Motors.
- VinFast is primarily controlled by Pham Nhat Vuong, Vietnam’s richest individual and founder of parent conglomerate Vingroup, who holds approximately 99.7% of the company’s stake.
- Despite the impressive market performance, VinFast faces challenges in competing with Tesla and other established car manufacturers in the EV market, as it has a minimal presence and limited registrations in the US.
- To drive sales, VinFast is adopting a dealer-based approach, in contrast to Tesla’s direct-to-consumer model, and is investing in a $4 billion factory in North Carolina.
VinFast’s remarkable market value growth reflects investor confidence in the company’s potential, but it also highlights the obstacles it must overcome to establish a significant presence in the highly competitive global EV market.