VinFast becomes world’s third-most valuable automaker with stock rally

Shares of Vietnamese electric-vehicle maker VinFast surged 21% on Monday, extending a rally from final week that greater than quadrupled its market worth to $160 billion.

The corporate made a blowout debut on Wall Avenue this month and has rapidly grown in valuation to grow to be the third-most priceless automaker – solely behind Tesla and Toyota.

However Vinfast’s small quantity of publicly obtainable shares has made the inventory vulnerable to volatility, with shares leaping or slumping greater than 14% in 11 of the previous 12 classes.

The inventory was on monitor so as to add almost $33.6 billion to its market capitalization, based mostly on a share value of $83.33.

VinFast’s shares have been among the many most actively watched on Stocktwits, a well-liked web site with retail buyers.

VinFast is nearly totally managed by Pham Nhat Vuong, Vietnam’s richest man and founding father of mum or dad conglomerate Vingroup, with a stake of about 99.7%, based on a submitting.

Regardless of the market enthusiasm, VinFast faces an extended street earlier than it could possibly begin competing meaningfully with Tesla and legacy automakers which might be pouring billions of {dollars} to seize a share of the EV market.

Solely 137 VinFast EVs have been registered in america by June, based on S&P World Mobility.

The agency can also be getting into the U.S. and European markets at a time when EV demand is slowing and Tesla has waged a value battle to defend its dominance.

VinFast expects to promote as many as 50,000 electrical autos this yr, in contrast with Tesla’s projection to ship 1.8 million vehicles.

To drive gross sales, VinFast is breaking away from the direct-to-consumer strategy utilized by Tesla and turning to sellers. The corporate can also be constructing a $4 billion manufacturing facility in North Carolina.

Reporting by Akash Sriram in Bengaluru; Enhancing by Devika Syamnath