VinFast stock drops after six consecutive days of gains.
VinFast, the electric vehicle maker from Vietnam, experienced a rollercoaster ride on Wall Street, with its stock soaring and then plummeting.
At the beginning of the week, the Vietnamese-owned firm reached an impressive $82.35 a share, boasting a market value of $188.84 billion.
However, the following day, the stock took a nosedive, plunging 44 percent to $46.10 a share, wiping out approximately $90 billion in market value, according to Barron’s.
VinFast, founded in 2017, made its initial public offering (IPO) at $22 a share on the NASDAQ on Aug. 15, following a merger with Black Spade Acquisition Company.
Since then, the company has quickly risen to become the third-most valuable automaker, trailing behind Tesla and Toyota.
VinFast Stocks Rose and Fell Over Investor Hype
VinFast CEO Le Thi Thu Thuy expressed her surprise at the warm welcome from the market and the recognition of the company’s competency.
However, despite the hype, VinFast is yet to turn a profit and faces tough competition from established automakers who have invested heavily in the EV market.
The company was founded through a partnership with Chevrolet, gaining exclusive rights to sell the brand in Vietnam and ownership of a GM factory in Hanoi.
VinFast’s owners and financial backers have invested around $7.5 billion to support its operations and capital expenses.
According to a filing with the Securities and Exchange Commission (SEC), VinFast incurred losses of $1.3 billion in 2021 and nearly $1.5 billion in the first three quarters of 2022.
Despite its shaky track record, investors remain undeterred for now.
The Epoch Times reached out to VinFast for comment.
Company Backed by Vietnam’s Richest Man
VinFast’s parent company, Vingroup JSC, is owned by Vietnam’s richest man, Pham Nhat Vuong, who controls an overwhelming 99.7 percent of the shares.
With a personal fortune worth $55.9 billion, Mr. Pham’s liquidity has taken a hit as the stock value declined.
VinFast’s CEO mentioned that there are plans to explore opportunities for additional transactions and increase liquidity in the market.
Despite the challenges, VinFast remains optimistic that the committed funds will lead to profitability.
Since the recent plunge, Mr. Pham has lost approximately $67 billion in paper wealth.
New Asian EV Startup Enters the American Market
VinFast has begun construction on its factory in North Carolina, which is expected to produce three vehicle models by 2025.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
