News

VinFast Auto Ltd.'s Market Capitalization Surpasses Ford and GM

James L. Flint

• August 17, 2023

Shares of electric vehicle (EV) startup VinFast Auto Ltd. have experienced a slight decline after their impressive debut on Nasdaq. However, the company's market capitalization has exceeded that of Ford Motor Co. and General Motors Co.

Impressive Debut Followed by Decline

VinFast went public through a SPAC deal valued at approximately $23 billion, and its stock began trading on Tuesday. By the end of its first session, the stock had more than tripled. However, on Wednesday, VinFast shares dropped over 18%, and during the extended session, they were down nearly 4%.

Market Capitalization Comparison

According to FactSet, VinFast's market capitalization on Wednesday was nearly $83 billion, surpassing Ford's value of about $46 billion and GM's value of around $45 billion. Some other notable comparisons include Rivian Automotive Inc., which has occasionally surpassed traditional automakers' market caps and currently stands at about $20 billion. Meanwhile, Tesla Inc. reigns supreme with a valuation of nearly $720 billion as of Wednesday.

Affiliation with Vingroup

VinFast is a majority-owned affiliate of Vingroup, one of Vietnam's largest publicly traded conglomerates.

Founder's Control and Trading Availability

Pham Nhat Vuong, chairman of Vingroup and founder of VinFast, controls approximately 99% of VinFast's shares, leaving only a small portion available to investors. The limited number of shares available for trading contributes to significant fluctuations in the stock.

Expansion Plans and Sales

In July, VinFast broke ground on its North Carolina plant and plans to invest up to $2 billion initially to achieve a production capacity of 150,000 EVs per year. Currently, the company imports its vehicles into the U.S., with a second shipment arriving in May. VinFast has sold approximately 13,000 electric vehicles this year, including nearly 4,000 in April.

Overall, VinFast's market capitalization surge highlights the growing prominence of EV startups in the automotive industry, challenging established players like Ford and GM.