Shares of Vietnamese VinFast almost halved – Kommersant
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Shares of the Vietnamese electric car manufacturer VinFast on Thursday, August 17, decreased by 34%. Thus, in the two days that have passed since the initial placement, they fell by 46%. However, the company is still valued at $46 billion, slightly more expensive than GM ($45 billion) and slightly cheaper than Ford ($47 billion).
VinFast share trading started on Tuesday. According to the results of the first day, they grew by more than 68%. As a result, the company’s capitalization reached $85 billion, which made it more expensive than Ford Motor, General Motors and BMW Group. However, the correction began almost immediately. The volatility of VinFast shares is due, among other things, to the fact that a relatively small number of them were issued, so buying and selling strongly influence the price.
The founder of VinFast, Pham Nyat Vyong, sets quite ambitious goals: to more than double the production of cars in a year, up to 50 thousand. Moreover, in the first half of the year, VinFast delivered only 11.3 thousand. The company is committed to active promotion in the US market – sales in the US began in March current year. At the same time, VinFast changed the promotion format in the United States several times, which, according to experts, could confuse buyers. In May, the company recalled all of the cars sold in the U.S. — about a thousand — due to display problems.
“VinFast may represent a new successful competitor in the electric vehicle market, but unlike when Tesla entered it, the space is now filled with offers from several manufacturers,” said Rick Mekler, partner at Cherry Lane Investments.
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