VinFast Went Public and Quickly Exceeded Legacy Automakers' Valuations
The stock market works in mysterious ways and can make or break companies as they attempt to go public. Recently, Vietnamese automaker VinFast went public using a SPAC deal, drawing a valuation of around $85 billion with shares up to $37.06 in trading yesterday.
That rise in valuation makes VinFast more valuable than several legacy automakers, including Ford and BMW. Even so, the shares traded this week only represent around one percent of the company’s ownership, with the remaining 99 percent being held by VinFast’s founder, Pham Nhat Vuong.
It’s worth pointing out that these launches don’t typically continue their ascent. Automotive News pointed out that many fizzled out after a few days when the buzz dies down. Even so, it’s an encouraging sign for VinFast, whose fortunes haven’t trended positively since its launch in the United States.
The company invited journalists to Vietnam to drive its new electric SUV, the VF8, only to be met with reviews ranging from “send it back” to “not ready for sale.” Despite that, the automaker has shipped its first units to customers here and is moving forward with its factory in North Carolina. VinFast recently broke ground on the facility, which will give it the domestic manufacturing footprint it needs to take advantage of federal tax incentives.
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