VinFast, the Vietnamese electric vehicle (EV) manufacturer, witnessed a surge in its shares during its Nasdaq debut on Tuesday, riding the wave of its recent $23 billion backdoor listing. This strategic move paves the way for VinFast to potentially secure investments from global stakeholders within the next 18 months.
The company’s stock made a soaring entrance at $22 (RM101) per share, surpassing the initial $10 (RM46) per share valuation set in collaboration with VinFast’s SPAC partner, Black Spade Acquisition. This upward trajectory continued throughout the trading session, culminating in a closing price of $37.06 (RM171.57) per share. Consequently, VinFast’s market capitalisation soared to $85 billion, eclipsing the market values of automotive giants like Ford at $48 billion and General Motors at $46 billion.
Approximately $185 million worth of VinFast’s shares were exchanged during this period.
This strategic merger with a special purpose acquisition company has granted VinFast a prominent listing on a market where its founder, Pham Nhat Vuong, is poised to challenge industry titan Tesla. Backed by a forthcoming $4 billion factory and a novel sales approach aimed at engaging dealers, Vuong’s vision for VinFast’s growth is resolute.
Vuong, Vietnam’s wealthiest individual, has become the predominant owner of 99% of VinFast’s 2.3 billion ordinary shares following the merger, achieved through his flagship company and affiliated entities.
While VinFast has successfully shipped nearly 3,000 vehicles to North America since late last year, initial sales have encountered sluggish traction. As of June, only 137 VinFast EVs have been registered in the United States, according to S&P Global Mobility data.
VinFast CEO Le Thi Thu Thuy confirmed the company’s strategic shift in its distribution model. The previous direct-to-consumer approach, heavily inspired by Tesla, is evolving into a hybrid model that integrates both company-owned showrooms and collaborations with dealers in international markets.
Originating as a subsidiary of Vietnam’s leading conglomerate, Vingroup, VinFast has received substantial investments from Vuong, Vingroup, and affiliated entities, totaling $9.3 billion, according to a June filing. Vuong’s personal commitment of $2.5 billion in April, bolstering the EV maker with a significant portion from his personal fortune, reflects his dedication to VinFast’s success.
Despite facing financial challenges, including a 49% drop in first-quarter revenue year-on-year and a net loss of $598 million, VinFast has forged ahead. The company’s 2022 performance showed a loss of $2.1 billion, underscoring the hurdles faced by the ambitious EV manufacturer. In a bid to further its growth, VinFast has embarked on the construction of a $4 billion manufacturing facility in North Carolina.
VinFast’s entry into the American and European markets coincides with a period of competitive pressure in EV pricing, led by trailblazer Tesla and an array of Chinese counterparts.
In California, VinFast’s VF8 starts at $46,000 (RM212k), positioning it in direct competition with Tesla’s Model Y priced at $47,740 (RM221k) before accounting for a $7,500 (RM3.4k) federal tax credit available for Tesla vehicles.
Additionally, VinFast is gearing up to introduce its larger VF9 EV to the U.S. market by the year’s end, with ongoing efforts to secure certifications from Europe’s safety regulator.
