Ever since Tesla burst onto the scene years ago, EV startups have been the apple of most investor’s eyes, as well as traders looking to cash in on the all-electric vehicle craze. However, as we’ve seen time and time again, there is a lot of risk involved with brand new companies looking to stake their claim in the burgeoning EV market. Take Rivian, for example, which went public and quickly flew past Ford and General Motors in terms of market cap, only to see its stock price tumble shortly thereafter. Meanwhile, Ford stock has been on a bit of a roller coaster ride lately, though Morgan Stanley just decided to maintain its “overweight” rating on Blue Oval shares, while Jefferies downgraded it to hold. Meanwhile, another EV automaker – VinFast – made its stock market debut just yesterday, and has already soared past FoMoCo, according to CNBC.
Based out of Vietnam, VinFast went public after completing its merger with the special purpose acquisition company (SPAC) Black Spade Acquisition, which is a shell company that uses initial public offerings (IPOs) to raise capital and acquire existing companies – a popular way for startups to go public in recent years.
Notably, VinFast shares closed at $37.06 on Tuesday, which is a 270 percent gain versus the IPO price of $10. That means the company is valued at around $85 billion – far more than Ford at $48 billion, as well as GM ($46 billion), BMW, and Volkswagen ($69 billion), though it still trails the market cap king – Tesla, which has a valuation of $739 billion.
VinFast was founded back in 2017, but just recently began delivering vehicles to U.S. customers this past March. It’s currently building a manufacturing facility in North Carolina – which is expected to have a production capacity of around 150k units annually – with the first vehicles slated to roll off the assembly line there in 2025.