VinFast, the Vietnam-based electric vehicle (EV) maker, had a remarkable debut on the Nasdaq as its shares surged by more than 68% on the first day of trading. This meteoric rise in share price propelled VinFast’s valuation to over $85 billion, which is nearly double the value of Ford and General Motors. While VinFast is still far behind Tesla, the world’s largest automaker with a market capitalization of $739 billion, it surpasses its Chinese rival BYD, which has a valuation of $93 billion.
VinFast’s entry into the Nasdaq was made possible through a merger with US-listed Black Spade Acquisition, a special purpose acquisition company (SPAC). The IPO price of Black Spade Acquisition in 2021 was $10, but VinFast’s shares closed at an impressive $37.06 on the first trading day. However, the following day saw a slight dip in share price, with the shares trading just above $30.
As the automotive unit of Vingroup, a Vietnamese conglomerate, VinFast was established in 2017. The company has already established 122 showrooms worldwide as of June and is further expanding its reach into the US market by building a factory in North Carolina. This move puts VinFast in direct competition with EV giants like Tesla and BYD, as well as traditional automakers focused on hybrid and electric vehicles. The factory is set to commence operations in 2025 and is projected to produce up to 150,000 vehicles annually in its initial phase.
When asked about VinFast’s strategy to compete with established players in the highly competitive US market, the company’s CEO, Le Thi Thu Thuy, emphasized that there is ample room for everyone in the shift from internal combustion engines to EVs. She believes that with the global and US market transitioning towards electric vehicles, there is viable space for VinFast, alongside other manufacturers.
VinFast’s impressive valuation and entrance into the Nasdaq indicate the growing prominence of electric vehicle makers in the global automotive industry. With the rise of environmental consciousness and the push for sustainable transportation, the demand for electric vehicles is poised to grow exponentially in the coming years. VinFast’s successful foray into the US market demonstrates the confidence investors have in the company’s ability to capitalize on this growing demand.
In conclusion, VinFast’s debut on the Nasdaq was nothing short of spectacular, with its shares skyrocketing and its valuation surpassing that of well-established automakers. As the company continues to expand its global presence and compete in the US market, it aims to capitalize on the increasing demand for electric vehicles. With a projected factory in North Carolina set to commence operations in 2025, VinFast is poised to make a significant impact in shaping the future of the automotive industry.
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