In an exhilarating trading session on Nasdaq, VinFast’s shares made a remarkable entry. This significant movement came on the heels of the electric vehicle creator’s impressive $23 billion indirect listing. Notably, there’s an anticipated capital infusion from global financiers in the horizon, likely within a year and a half.
Launching at a whopping $22, the stock skyrocketed from the initial agreement of $10 per share in alliance with Black Spade Acquisition, pegging VinFast’s valuation at $23 billion. By the day’s conclusion, the stock’s value had amplified to $37.06, propelling the EV entity’s worth to a staggering $85 billion. To provide perspective, this value surpasses both Ford and General Motors, whose capitalizations stand at $48 billion and $46 billion respectively.
A significant transaction of approximately $185 million in the company’s shares was observed, as per Refinitiv’s data.
VinFast’s merger with the SPAC sets the stage for a grand market entry. The visionary behind this, Pham Nhat Vuong, envisions challenging titans like Tesla, backed by a $4 billion manufacturing behemoth in the making and a revamped sales strategy emphasizing dealer partnerships.
Vuong, Vietnam’s top magnate, retains ownership of a massive 99% of VinFast’s ordinary shares, post-merger, via his primary enterprise and associated entities.
“Undoubtedly, in the forthcoming 18 months, we’re on track for capital generation, having garnered the interest of several pivotal and institutional investors,” shared David Mansfield, VinFast’s CFO, with Reuters.
Despite dispatching close to 3,000 vehicles to North America recently, VinFast’s initial outreach witnessed tepid responses. As of June, a mere 137 of its EVs were registered stateside.
Dan Ives, an analyst with Wedbush Securities, commented on the evolving landscape, noting an intensified focus on frontrunners in the burgeoning EV revolution, Tesla being a notable contender.
Rethinking its distribution paradigm, VinFast is migrating from a Tesla-inspired direct-to-buyer model. “Our aspiration is a composite framework: establishing our exclusive showrooms while also collaborating with dealerships,” remarked Le Thi Thu Thuy, VinFast’s CEO.
Originating under the umbrella of Vietnam’s mega-conglomerate Vingroup, VinFast saw Vuong, Vingroup, and associates infuse an impressive $9.3 billion. Vuong’s commitment also included a generous $2.5 billion pledge to strengthen the company, inclusive of a personal contribution of $1 billion.
A brief glance at VinFast’s financial trajectory shows a 49% dip in Q1 revenue year-on-year, and a $598 million net deficit. The preceding year witnessed a $2.1 billion loss. Yet, with a $4 billion facility springing up in North Carolina and a strategic entry into the US and European sectors, VinFast remains undeterred, even amidst aggressive EV pricing competitions from giants like Tesla and emerging Chinese firms.
VinFast’s VF8, priced at $46,000 in the Golden State, offers stiff competition to Tesla’s Model Y, especially post the application of a federal tax rebate. Emphasizing future strategies, Thuy highlighted endeavors toward cost-effectiveness, along with the forthcoming introduction of the larger VF9 EV in the US, pending European safety approvals.