Vietnamese EV Trailblazer VinFast Zooms Ahead Of Ford, GM In Carmaker Hierarchy

VinFast Auto Ltd. (NASDAQ:VFS), the Vietnamese electric vehicle (EV) manufacturer founded by billionaire Pham Nhat Vuong, has seen its market capitalization spike to an astounding $190 billion.

This meteoric ascent, witnessing a staggering 600% surge since its mid-August 2023 initial public offering (IPO), marks a substantial feat in the EV sector.

VinFast’s current valuation has surpassed the combined market worth of industry giants Ford Company (NYSE:F), General Motors (NYSE:GM), Ferrari (NYSE:RACE) and Stellantis N.V. (NYSE:STLA)

According to Companiesmarketcap.com, VinFast presently holds the position of the world’s third-largest automobile manufacturer, trailing behind Tesla Inc. (NYSE:TSLA) and Toyota Motor Corp. (NYSE:TM).

A Tight Float

Beneath the veneer of this EV whirlwind lies a fascinating fact—only two shareholders command an overwhelming 99.69% stake in VinFast, relegating a mere 0.3% to the public domain.

This peculiarly tight float induces an exhilarating dance in price action. The scarcity of VinFast shares amplifies the stock’s susceptibility to market movement.

Nevertheless, the surge in VinFast’s value defies conventional metrics. In 2022, the automaker’s global car sales amounted to a modest 24,000 units—a mere fraction of Volkswagen AG and Ford’s deliveries. Staggeringly, the first quarter of the current year witnessed a nearly $600 million net loss, a shortfall expected to widen as the EV manufacturer scales its vehicle production.

A Familiar Echo

Harkening back to a recent chapter in market history, a striking parallel emerges between VinFast’s trajectory and the rise of AMTD Digital Inc, as Bloomberg recently noted.

Just a year ago, this Asia-rooted, US-listed entity astounded the financial community by catapulting over 32,000% within weeks.

Its ephemeral valuation soared to over $400 billion, momentarily eclipsing even JPMorgan Chase & Co. (NYSE:JPM)

Yet, this exorbitantly valued financial services firm has since plummeted by over 99%, culminating in a record-low valuation of $1.2 billion.

Read now: Tesla Investor Says VinFast, At $200B Market Cap, ‘Even Bigger Bubble’ Than Nikola Was In 2020