26 Aug BBC : VinFast – Vietnam EV maker valued at more than Ford or GM
Media Source : BBC
Vietnamese electric vehicle (EV) maker VinFast’s stock market valuation has soared above Ford and General Motors (GM) on its first day of trading.
Shares in the firm, which has yet to make a profit, closed above $37 (£29) each in their New York’s debut.
Regulatory filings show he controls 99% of the firm’s outstanding shares, mostly through Vietnam’s largest conglomerate, Vingroup JSC.
Trading in VinFast was relatively thin on Tuesday, with around $185m worth of its shares changing hands.
“The markets believe that given geopolitics that Vietnam, not China, will be that country.”
Spacs are often used by start-ups to speed up the often slow and expensive process of taking a private company public. In simple terms, it means merging a company that is not on a stock exchange with one that is.
Several EV makers – including Lordstown Motors and Faraday Future – have gone public using Spacs in the last three years.
However, both firms have lost more than 90% of their stock market value since their mergers.
But VinFast also faces tough competition as major players fight for market domination.
Market leaders – including Elon Musk’s Tesla and BYD, which is backed by veteran investor Warren Buffett – have been cutting prices to boost sales.
“Tesla will continue to be the clear leader in EVs but there will be many winners,” said Dan Ives of Wedbush Securities.
“VinFast has built a strong foundation for EV success.”