Vinfast share surges after becoming world's third-most valuable automaker

Vinfast shares rose 21 percent on Monday, continuing a week-long rise that has more than tripled the company's market worth to $160 billion.

The company created a stir on Wall Street earlier this month, rapidly ascending in value to secure the third position in market capitalization, trailing only Tesla and Toyota.

Despite this success, Vinfast's limited number of publicly available shares has led to volatility, resulting in fluctuations of over 14 per cent in 11 out of the past 12 trading sessions. With a share price of $83.33, the stock appeared poised to augment its market capitalization by approximately $33.6 billion.

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Vinfast's stock garnered significant attention on Stocktwits, a prominent platform for individual investors.

Pham Nhat Vuong, Vietnam's wealthiest individual and the founder of parent company Vingroup, which holds around 100 percent ownership of Vinfast, nearly entirely controls the company.

Although there's considerable consumer enthusiasm, Vinfast faces a substantial journey ahead to effectively rival Tesla and traditional automakers, both of whom are investing billions in the electric vehicle (EV) sector.

S&P Global Mobility's data reveals that only 137 Vinfast EVs were registered in the United States up until June. The company's expansion into the US and European markets comes at a time when EV demand is dwindling and Tesla is engaging in a price war to uphold its dominance.

Vinfast's projection of selling up to 50,000 electric vehicles this year contrasts starkly with Tesla's forecast of 1.8 million vehicle sales.

Deviating from Tesla's direct-to-consumer approach, Vinfast is adopting a strategy reliant on dealers to drive sales. Additionally, the company is in the process of constructing a $4 billion facility in North Carolina.

(Inputs from Reuters)

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