VinFast Ranks Third in Global Auto Industry

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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. It trails behind Tesla and Toyota but surpasses Volkswagen, Ford, and General Motors. VinFast's stock has experienced significant volatility due to the small number of publicly available shares. The majority of shares are controlled by the company's founder, Pham Nhat Vuong.

FutureCar Staff Sep 02, 2023 9:38 AM PT

VinFast Ranks Third in Global Auto Industry

VinFast, the Vietnamese car brand, has become 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 lagging behind only Tesla and Toyota in terms of market value. It surpasses giants like Volkswagen, Ford, and General Motors.

However, due to the small amount of publicly available shares, VinFast's stock is prone to volatility. The price has fluctuated more than 14 percent in 11 of the past 12 trading sessions.

The Southeast Asian carmaker debuted 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 the first day and reached $82.35 yesterday.

Pham Nhat Vuong, the company's founder and Vietnam's wealthiest man, controls approximately 99 percent of VinFast. The majority of shares are not available to investors, making Vuong the biggest winner from the recent stock surge.

VinFast 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 faced delivery delays in the first half of the year but eventually started delivering its US-bound vehicles.

However, VinFast only delivered 151 EVs in the US in the first six months, according to Experian. The company aims to expand its production capacity by building a factory in North Carolina, with production set to begin in 2025.