VinFast Ranks as Third-Most Valuable Automaker

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【Summary】Vietnamese car brand VinFast has become the world's third-most valuable automaker, with a market value of $160 billion. Its stock surged 21% in a single day, quadrupling its market value. VinFast is behind only Tesla and Toyota in terms of value, surpassing giants like Volkswagen, Ford, and General Motors. However, the company's stock is highly volatile due to the limited number of publicly available shares.

FutureCar Staff Aug 30, 2023 4:22 PM PT

VinFast Ranks as Third-Most Valuable Automaker

VinFast, the Vietnamese car brand, has skyrocketed in value and is now the third-most valuable automaker in the world. Its stock surged 21 percent, extending a rally from last week that quadrupled its market value to $160 billion, according to Reuters.

Established just six years ago, VinFast is now trailing behind only Tesla and Toyota in terms of market value, surpassing giants like Volkswagen, Ford, and General Motors.

However, the small number of publicly available shares has made VinFast's stock highly volatile, with prices fluctuating more than 14 percent in 11 of the past 12 trading sessions, as noted by Reuters.

The Southeast Asian carmaker made its debut on the Nasdaq stock market on August 15 after completing a SPAC merger with Black Spade Acquisition Company. VinFast's shares closed at $37.06 on its first day of trading and closed at $82.35 yesterday.

The founder of VinFast, Pham Nhat Vuong, controls approximately 99 percent of the company, with the majority of shares not available to investors. As a result, he has been the biggest beneficiary of the recent surge in stock value.

Currently, VinFast 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. The company faced delivery delays and recalls in the first half of this year but has since started delivering vehicles in the US.

In the first six months of this year, VinFast delivered only 151 EVs in the US, according to Experian. The company has plans to build a factory in North Carolina, with production scheduled to begin in 2025.