VinFast Auto Ltd., a prominent electric-vehicle startup, has experienced a drastic decline in its market capitalization, plummeting by over $140 billion in under two weeks. The company’s stock has been weighing on its performance, with a six-day losing streak.
Last month, the shares of VinFast (VFS) skyrocketed following its initial public offering through a special-purpose acquisition company deal. This surge elevated the company’s market cap to an astonishing $231.3 billion on August 25th, surpassing renowned automakers like Ford Motor Co. (F) and General Motors Co. (GM).
However, VinFast seems to be on track for a seventh consecutive day of decline. On Thursday, the shares of this low-float company fell by 27.8%, resulting in VinFast’s market cap plunging to $84.9 billion, according to FactSet data.
The Automotive Powerhouse of Vietnam
VinFast is a majority-owned affiliate of Vingroup, a Vietnamese conglomerate that ranks among the largest publicly traded companies in Vietnam. As of June 30, 2023, VinFast has successfully delivered nearly 19,000 electric vehicles (EVs).
It’s worth noting that around 99% of VinFast’s shares remain under the control of Vingroup’s chair and VinFast founder, Pham Nhat Vuon. This leaves only a small portion available for investors.
Expanding Horizons: Entering the U.S. Market
In addition to its operations in Vietnam, VinFast has been actively importing its vehicles into the United States while concurrently increasing its presence in North America. The company recently commenced the construction of an electric-vehicle manufacturing site at the Triangle Innovation Point in Chatham County, N.C.
This cutting-edge facility is expected to have an annual production capacity of 150,000 EVs once fully operational.
While VinFast Auto Ltd.’s market cap has experienced significant turbulence, the company continues to strive towards expanding its global footprint and revolutionizing the electric-vehicle industry.