Vinfast and pre-market surge

Vinfast Shares Surge 30% Pre-Market, Hits $160B Market Value

Vietnamese electric vehicle (EV) producer Vinfast witnessed a remarkable surge of 30% in its shares during pre-market trading on Monday, propelling its market value to an impressive $160 billion. This surge places Vinfast as the third-most valuable automaker globally, with only Tesla and Toyota leading the pack. The pre-market share price of $90.55 of Vinfast stock indicates a potential addition of nearly $50 billion to its market capitalization. Despite the scarcity of publicly available shares, this Wall Street debut marked a substantial achievement for the company. Nevertheless, the stock has exhibited considerable volatility, with shares either soaring or plummeting by over 14% in 11 out of the last 12 sessions.


The current single-day gain of Vinfast is projected to surpass the individual valuations of major U.S. automakers Ford Motor and General Motors combined, highlighting the magnitude of its pre-market surge. Notably, the company is under the near-complete control of Vietnam’s wealthiest individual, Pham Nhat Vuong, who also serves as the founder of the parent conglomerate Vingroup. Vuong maintains an impressive stake of approximately 99.7% in the company.


Despite its soaring valuation and exceptional growth, Vinfast faces a considerable journey before achieving a substantial competitive standing against industry leaders like Tesla and traditional automakers. Recent data from S&P Global Mobility reveals that a mere 137 Vinfast EVs were registered in the United States up to June. In stark contrast, Tesla has set an ambitious target of delivering 1.8 million vehicles this year alone, dwarfing Vinfast’s projection of 50,000 units. 


In a strategic maneuver to enhance its sales performance, Vinfast is steering away from the direct-to-consumer approach popularized by Tesla. Instead, the company plans to expand its reach through a network of dealers. This calculated strategy shift is further reinforced by Vinfast’s intent to construct a substantial $4 billion manufacturing facility in North Carolina, demonstrating the company’s commitment to its expansion efforts.


The rapid appreciation in Vinfast’s valuation firmly places the EV manufacturer as a credible contender in the industry, alongside giants like Tesla and Toyota. This upward trajectory is undoubtedly a testament to the innovative strategies and leadership of Pham Nhat Vuong. However, industry analysts and experts are keeping a watchful eye on the company’s approach to market dynamics and sales channels, questioning whether Vinfast’s distinct strategies will lead to the realization of its full potential.


As the EV market continues to evolve, Vinfast’s meteoric rise underscores the dynamism of the industry and the potential for disruptors to challenge established players. The company’s recent surge in valuation not only showcases the global interest in sustainable transportation but also sets the stage for a compelling competition between Vinfast and the industry’s titans. In the coming months and years, the automaker’s performance will undoubtedly be a focal point of the EV narrative, as stakeholders and enthusiasts alike anticipate whether Vinfast can truly redefine the industry landscape.


Source: Reuters

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