VinFast, the Vietnamese car brand that makes the VF 8 and VF 9 all-electric SUVs, is now the third-most valuable automaker in the world, after its stock surged 21 percent yesterday, extending a rally from last week that more than quadrupled its market value to $160 billion, according to Reuters.
In other words, the young automaker that was established just six years ago and started selling cars in the United States earlier this year is lagging behind only Tesla ($756 billion market cap) and Toyota ($225 billion) in terms of market value, but ahead of giants like Volkswagen ($62 billion), Ford ($47 billion), and General Motors ($45 billion).
However, as Reuters notes, the small amount of publicly available shares (1.3 million) has made VinFast’s stock prone to volatility, with the price going up and down more than 14 percent in 11 of the past 12 trading sessions.
Gallery: 2024 VinFast VF9
The Southeast Asian carmaker debuted on the Nasdaq stock market on August 15 with the trading symbols “VFS” and “VFSWW” after completing a SPAC merger with Black Spade Acquisition Company. A day later, VinFast’s shares closed at $37.06 in New York. Yesterday, the manufacturer’s shares closed at $82.35.
According to regulatory filings, Pham Nhat Vuong, the company’s founder and Vietnam’s wealthiest man, controls roughly 99 percent of VinFast, partly through shares held by his wife and Vingroup JSC. In other words, the vast majority of shares aren’t available to investors, with the biggest winner from the recent stock surge being the firm’s founder.
The Vietnamese automaker, which has its headquarters in Singapore, currently sells the VF 8 five-seat all-electric crossover in the US and plans to start deliveries of its three-row VF 9 SUV later this year. It had a rough start in the first half of this year, experiencing multiple delivery delays, some caused by recalls, but eventually started deliveries of its US-bound vehicles.
With this being said, VinFast delivered only 151 EVs in this part of the world in the first six months, according to Experian.
The company also plans on building a factory in North Carolina and held a groundbreaking ceremony last month, with production set to begin in 2025.