VinFast, the emerging electric vehicle (EV) manufacturer hailing from Vietnam, made a remarkable entrance onto the Nasdaq stock exchange last week.
In what can be described as a soaring debut with limited trading activity, the company’s shares surged following its unconventional $23 billion backdoor listing.
The startup’s stock initiated trading at an impressive $22, more than double the $10 per share agreed upon with its special purpose acquisition company (SPAC) partner, Black Spade Acquisition, which had valued the automaker at $23 billion.
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But that’s hardly all of it. VinFast’s shares continued to ascend rapidly over the past week, propelling the company’s market cap above $88 billion, according to TradingView data retrieved by Finbold on August 23.
This unprecedented share price surge made VinFast a bigger company than General Motors (NYSE: GM) and Ford Motor (NYSE: F) combined, as over 19 million VFS changed hands since the stock’s August 15 debut.
At the time of writing, VinFast is also a significantly larger stock in terms of market cap than other prominent carmakers such as BMW, Mercedes, and Rivian (NASDAQ: RIVN). In fact, VinFast is currently the fourth-largest auto manufacturer by market cap, only behind Tesla (NASDAQ: TSLA), Toyota (NYSE: TM), and Porsche.
VinFast stock price analysis
At press time, shares of VinFast were standing at $36.72, up by a whopping 108% in the past 24 hours.
The EV stock gained more than 66% across the last week and over 260% since its public debut on August 15, per TradingView data.
The remarkable surge made VinFast the top-performing company that debuted in a SPAC merger in 2023.
Only 1.3 million VFS shares are available for trading at the moment, suggesting that investors should expect significant volatility, considering that stocks with lower float are more exposed to large price swings.
VinFast recalled 1,000 EVs
Interestingly, VinFast’s smashing stock market debut on Nasdaq came just weeks after the Vietnamese automaker was instructed to recall its entire first batch of vehicles it shipped to the US last year, due to a safety warning issued by the country’s authorities.
In particular, the U.S. National Highway Traffic Safety Administration (NHTSA) said 999 of VinFast’s VF 8 cars sustained a software error in the dashboard that prevented viral safety information being shown. As a result, the error “may increase the risk of a crash,” NHTSA noted.
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