New EV Stock VinFast Goes Public — and It’s Worth More Than Ford and Volkswagen

Key Takeaways

• This week, EV startup VinFast made its Nasdaq debut to much fanfare
• VinFast’s market cap even topped Ford’s
• Investor hype is huge, but so is potential share price volatility

If you haven’t heard of VinFast yet, buckle up. The Vietnamese EV startup went public on the Nasdaq stock exchange following its merger with the SPAC Black Spade Acquisition. In effect, Black Spade is now Vinfast with a stock symbol of VFS.

Investors were thrilled after the approval of the merger and the numbers were jaw dropping. Is VinFast going to take the car industry by storm? Let’s take a closer look below.

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What is VinFast and why is it special?

VinFast is hardly the only hot EV startup out there, but what it has that investors love is impressive potential to scale. The company delivered 11,300 EVs during the first half of this year, including 740 SUVs sold in the U.S. in the second quarter.

VinFast has a new plant in North Carolina in the works that will produce 150,000 vehicles a year to start. All in, the company can make a whopping 300,000 EVs in a year. The company started in 2017, and now, a mere six years later, VinFast has become not only one of the most valuable EV makers, but also one of the most valuable automakers period.

Ford who?

Shares of VinFast shot up to 270% on the Nasdaq on their first day of trade. They opened at $22 and closed at $37 per share. That put VinFast’s market cap at over $85 billion, more than Volkswagen’s ($69.7 billion) and Ford’s ($48 billion), according to Refinitive.

But before we get carried away here, it’s worth pointing out that this surge comes with some volatility. 90% of the SPAC’s investors took their money out of the deal before it was completed, which meant fewer shares. Fewer shares means more share price fluctuation.

Even after VinFast’s stock dropped 18.75% and closed at $30.11 on Wednesday, the market cap is still raising eyebrows. Is it worth all of this buzz?

Maybe. VinFast reportedly has four models in production and two on the way, but reviews of the cars on the market so far have been mixed.

The bottom line

There’s no denying that VinFast had a sensational Nasdaq debut.

Looking ahead, we see potential in VinFast, but the company’s success is going to (at least in part) come down to its ability to actually deliver vehicles. Delivery delays have plagued other EV companies, and, ultimately, you can only sustain impressive numbers if you can get cars into driveways. Oh, and people have to enjoy driving them, too.

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