Vietnamese electric vehicle (EV) manufacturer VinFast has achieved a remarkable stock market valuation of $85 billion on its first day of trading in New York, surpassing both Ford and General Motors (GM). Despite not yet turning a profit, VinFast’s shares closed above $37 each, outpacing Ford’s $48 billion and GM’s $46 billion market valuations. This development highlights the fierce competition among established automakers and newer entrants in the rapidly growing EV market.
VinFast’s listing has significantly boosted the wealth of its founder and chairman, Pham Nhat Vuong, who is already Vietnam’s wealthiest individual. Regulatory filings indicate that Vuong controls 99% of the company’s outstanding shares through Vietnam’s largest conglomerate, Vingroup JSC. The limited number of available shares for trading can lead to significant price fluctuations.
VinFast utilized a special purpose acquisition company (SPAC) to go public, a method increasingly employed by startups to expedite the process of becoming a publicly traded company. This approach has been taken by various EV manufacturers in recent years.
While some EV startups that went public through SPACs experienced significant declines in stock value, experts suggest VinFast could fare better due to its backing from Vingroup, a company with a proven growth track record. Despite tough competition from established players like Tesla and BYD, analysts believe VinFast has positioned itself well for success in the EV market.
