Based in Vietnam, VinFast Auto Ltd. saw its shares surge more than 68% on their first day of trading on Nasdaq after coming public via a special purpose acquisition company (SPAC). The shares started trading at $22 per share, valuing the corporation at around $50 billion. This is more than double the $10 per share, …
Based in Vietnam, VinFast Auto Ltd. saw its shares surge more than 68% on their first day of trading on Nasdaq after coming public via a special purpose acquisition company (SPAC). The shares started trading at $22 per share, valuing the corporation at around $50 billion. This is more than double the $10 per share, or $23 billion, agreement reached with SPAC partner Black Spade Acquisition. Even at the lower valuation, VinFast had the largest market capitalization of any Vietnamese firm trading in the United States. In the final hour of trading, the stock price had risen to $37.06 per share. According to Refiniv data, about $185 million worth of the company’s shares were exchanged.
The merger with the special purpose acquisition company (SPAC) gave Vinfast a listing in a market where founder Pham Nhat Vuong intends to compete with industry leader Tesla with a $4 billion factory located in North California under development and a fresh strategy to sales to attract dealers. Vuong, Vietnam’s richest man, owns 99% of VinFast’s 2.3 billion ordinary shares after the merger through his main firm and affiliates.
As of the end of June, VinFast had delivered almost 19,000 EVs, virtually entirely in Vietnam. In March, the business delivered its first vehicles to consumers in California, marking its first sales outside of the United States. VinFast stated that it was prepared to launch three additional models as it grows outside of Vietnam. However, since late last year, VinFast has sent roughly 3,000 vehicles to North America, but initial sales have been poor. According to S&P Global Mobility, just 137 Vinfast EVs were registered in the United States as of June.
VinFast CEO Le Thi Thu Thuy stated that the firm was revising its distribution plan, which was modelled on Tesla’s direct-to-consumer method, and that it expected to partner with dealers in international markets. The company is switching to a hybrid model where showrooms will be opened as well as partnerships with dealers.
VinFast is entering the American and European markets at a time when EV pricing is being pushed down by market leader Tesla and a slew of Chinese firms. VinFast’s first-quarter revenue fell 49% from the previous year, resulting in a $598 million financial loss. The corporation reported a $2.1 billion loss in 2022. The company is working on “cost reduction in the future.” The CEO stated that VinFast planned to deliver its larger VF9 EV to the US market by the end of the year and that the company was in the process of getting its vehicles authorized by Europe’s safety agency.
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