Vietnamese Car Company with 20,000 Units Sold, Ranked 3rd in Global Market Cap?

688% Surge Over 13 Days Post-Listing
Only 1% of Shares Tradable... 'Bubble' Warning
Experts Say "Meaningless Numbers"

Vietnam's emerging electric vehicle company 'VinFast' is experiencing a surge on the New York Stock Exchange. The company's market capitalization, based on sales of about 20,000 vehicles last year, ranked third in the world as of the 28th (local time), following Tesla and Toyota. However, experts have warned of a possible 'stock price bubble.'

According to U.S. financial media Bloomberg and others on the day, VinFast's stock price closed at $82.25, up 19.75% from the previous day's closing price. VinFast was listed on Nasdaq on the 15th. Since then, the stock price has surged by a staggering 688% over 13 days.

Currently, VinFast's market capitalization is about $190 billion, making it the world's third-largest automobile manufacturer after Tesla and Toyota. It is even larger than Goldman Sachs ($110 billion), a global investment bank headquartered in the U.S., and Boeing ($137 billion), a global aircraft manufacturer.

On the 15th (local time), Vietnamese electric vehicle company VinFast was listed on the NASDAQ stock exchange in New York, USA. [Image source=VinFast]

Bloomberg analyzed the sudden VinFast boom, stating that it "suggests that the market's 'animal spirits' have not yet subsided."

However, financial experts warn that VinFast's stock price is close to a bubble. The primary issue is that earnings do not support the stock price.

VinFast sold about 20,000 vehicles last year and is expected to sell around 50,000 this year. This level is incomparable to global automakers such as Tesla and Toyota.

Also, the surge in VinFast's stock price is likely due simply to supply and demand issues. Currently, only about 1.3 million shares of VinFast stock are available for trading.

This accounts for only 1% of the total shares, with the remaining 99% held by Pham Nhat Vuong, the founder of VinFast and chairman of Vingroup. In such a situation, even a small inflow of funds can cause significant stock price fluctuations.

Regarding this, the U.S. economic media 'Barron's' pointed out on the day, "The wealth that can be generated from the tradable shares is only about $1 billion (approximately 1.3 trillion KRW)," adding, "The numbers (stock price) really mean nothing. VinFast is unprofitable, and its vehicle production capacity is very limited. This stock belongs to the realm of memes."

Meanwhile, VinFast was established as a subsidiary of Vingroup, known as the 'Samsung of Vietnam.' It is Vietnam's first domestic electric vehicle manufacturer and also produces electric scooters. It was indirectly listed on Nasdaq through a SPAC merger with Black Spade Acquisition (BSA).

This content was produced with the assistance of AI translation services.