VinFast, the Vietnamese electric vehicle manufacturer that made headlines with its blockbuster Wall Street debut last week, experienced yet another astonishing rally on Tuesday as its shares skyrocketed, doubling in value. The company’s shares, listed under the symbol ‘VFS’, skyrocketed by a staggering 109%, closing at $36.7 in a whirlwind of trading activity. This surge comes as a multitude of small-scale investors thronged to associate themselves with the burgeoning automaker.
The extraordinary rally in VinFast’s stock value not only garnered attention but also bolstered the company’s potential to secure additional capital from investors, a move underscored by CEO Thuy Le. He revealed that the firm was actively exploring opportunities to leverage the newfound interest to bolster its financial standing.
Following a single day of trading on the Nasdaq stock exchange, VinFast’s shares demonstrated an exceptional increase of over 250%, propelling its market capitalization to a remarkable $85 billion. This valuation places VinFast in a position higher than established industry titans such as Volkswagen and Ford, a feat made even more impressive by the fact that the company produces a relatively limited number of vehicles.
The founder and significant shareholder of VinFast, Pham Nhat Vuong, commands 1% of the company’s shares, contributing to the stock’s inherent volatility. However, as the remaining 99% of shares are set to be available on the market in the coming months, the anticipation of increased liquidity is palpable.
CEO Thuy Le expressed her enthusiasm for the market’s warm reception, noting that the team was both energized and pleasantly surprised. Le opined that the market recognition was indicative of the company’s competency and potential for growth.
In contrast to its modest sales figures of 24,000 vehicles globally in 2022, which pales in comparison to industry giants like Volkswagen and Ford with deliveries of 8.3 million and 4.2 million respectively, VinFast has garnered significant attention on investment-focused social network Stocktwits. This platform has seen the company emerge as one of the most watched stocks and trending enterprises.
Notably, Vingroup, the conglomerate led by billionaire chairman Pham Nhat Vuong, has demonstrated significant commitment by pledging $2.5 billion. This substantial financial backing is envisioned to expedite VinFast’s journey toward profitability and break-even point, as articulated by CEO Thuy Le.
While VinFast is still in the early stages of scaling its multinational operations, it has its sights set on ambitious global expansion plans. The company is preparing to lay the foundation for a new manufacturing facility in North Carolina, signaling its intention to make inroads into the US market. Moreover, aspirations extend to future launches in the Asia-Pacific and Middle East regions, showcasing the company’s unwavering determination to compete on the global stage.
In an intriguing twist, VinFast’s audacious spirit is palpable, as it dares to challenge established industry giants, including Tesla. CEO Thuy Le affirmed that the decision to enter the US market was, in fact, driven by a desire to compete directly with the electric vehicle titan.
As VinFast continues to ride the waves of success on Wall Street, its trajectory remains one of fervent interest and scrutiny in the days and months to come. The electric vehicle startup’s exceptional performance and global aspirations paint a promising picture for its future, setting the stage for an enthralling journey in the automotive industry’s evolving landscape.
Source: CNN
