EV maker Vinfast still worth more than Ford and GM after stock tanks 19% | TechCrunch

Vietnamese EV maker VinFast’s debut Tuesday on the Nasdaq public trade was nothing wanting exceptional. The automaker, which went public by way of a merger with particular goal acquisition firm Black Spade Acquisition, noticed shares catapult 68% to shut at $37.06 — giving it a valuation of $86 billion, a determine far above Ford, GM and Stellantis.

However the true stunner got here Wednesday. Even after VinFast’s inventory worth plummeted 18.75% and closed at $30.11, the corporate was nonetheless holding onto a market cap that put it effectively forward of different established automakers.

It’s an eyebrow-raising valuation for a younger EV upstart that delivered simply 11,300 vehicles within the first half of 2023. And its fundamentals present an organization with pricey ambitions that far outweigh revenue. VinFast needs to interrupt into the U.S. market on the retail and manufacturing fronts, a plan that features constructing a $2 billion EV factory in North Carolina and opening up showrooms in California and different states.

So what’s driving investor curiosity and volatility? The seek for the subsequent Tesla actually performs a job. However there could also be different causes afoot. Because the WSJ noted, 90% of the SPAC’s traders took their cash out of the deal earlier than it was accomplished. Fewer shares out there for buying and selling means numerous room for giant swings within the share worth.

Share volatility is more likely to proceed for VinFast. However the true check will probably be within the years to come back as VinFast makes an attempt to scale manufacturing and promote People on its portfolio of EVs. That may very well be a tough street, contemplating that VinFast’s VF8 EV has been widely criticized for almost the whole lot from trip high quality to literally failing to operate.