'Vietnam's Tesla' That Surpassed Hyundai and Benz Sees Stock Price Halved in Two Days

VinFast, Soaring After US Listing Then Plummeting
"Still a Bubble" Ford and GM Market Cap Twice as High
"Only 1% of Shares Tradable... Beware of Volatility"

The market capitalization of VinFast, a newly established electric vehicle company recently dubbed the 'Tesla of Vietnam' and whose stock price had surged dramatically, has fallen by more than half over two days. Previously, experts had warned that it was difficult to consider VinFast's stock price at a reasonable level at this point.

According to foreign media reports including Bloomberg on the 30th (local time), VinFast's stock price closed at $41.27 (approximately 54,500 KRW), down 10.77% from the previous trading day. The day before, it had plunged 43.84%. Over two days, the stock price has dropped by more than half.

An electric vehicle from VinFast parked in front of a car dealership in LA, USA
[Image source=Reuters Yonhap News]

The market capitalization also halved from $190 billion (approximately 251 trillion KRW) on the 28th to $95.8 billion (approximately 126 trillion KRW) on the 30th. However, it is still more than twice the amount of major U.S. automakers such as Ford ($48.1 billion, approximately 63.5 trillion KRW) and GM ($45.9 billion, approximately 60.6 trillion KRW).

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.

On the 15th, VinFast was indirectly listed on Nasdaq through a SPAC merger with Black Spade Acquisition (BSA). Since then, the stock price surged an astonishing 688% over 13 days until the 28th.

At its peak, VinFast's market capitalization reached $190 billion, ranking third among global automakers after Tesla and Toyota.

VinFast, which was listed on Nasdaq on the 15th (local time). [Image source=VinFast]

However, experts have pointed out that there is no basis to support VinFast's stock price. VinFast sold 20,000 vehicles last year and is expected to sell about 50,000 this year. This is incomparable to companies like Tesla and Toyota, which sell hundreds of thousands of vehicles each quarter.

The net loss also amounts to nearly $600 million (approximately 800 billion KRW), making it a company that does not generate positive cash flow. Bloomberg described this as a "surge difficult to justify by fundamentals."

Additionally, VinFast's stock price surge may simply be due to a shortage of tradable shares. Currently, only 1% of VinFast's total shares are circulating in the market, while the remaining 99% are held by Vingroup founder Pham Nhat Vuong. In such a situation, even a small inflow of liquidity can drive up the price.

On the 29th, the U.S. financial media outlet Barron's warned, "The wealth that can be generated from tradable shares is only about $1 billion (approximately 1.3 trillion KRW)," adding, "It means nothing. This stock belongs to the realm of memes."

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