Published on August 30th, 2023 | by Sounder Rajen0
VinFast Now World’s Number 3 Automaker As Market Share Jumps 20%
Vietnam’s EV automaker, VinFast now sees its value exceeding USD191 billion
The electric vehicle (EV) market is heating up as Vietnam’s VinFast saw a sudden surge in its shares, a startling 20 percent, to be exact, and this propelled the brand up to the third spot in all global EV makers and shaking up the EV market as a whole. So will this last or was it just a temporary fluke? Let’s review.
The Vietnamese EV manufacturer, VinFast, now has the third-highest market capitalization among global automakers, behind only U.S.-based Tesla and Japan’s Toyota Motor. This is an impressive feat for a relatively new and unknown company so it makes this success all the more sweet.
Moreover, as previously mentioned, VinFast saw its shares rise 20 percent in the U.S. market on Monday, 28 August 2023, and its market capitalization reached USD191.2 billion (RM 886,690,000,000), according to CNBC. VinFast operations in the U.S. are also not yet underway, but the EV boom there has led to a rush of purchases.
According to FactSet, global leader Tesla had a market capitalization of USD760 billion (RM 3,524,500,000,000) as of 25 August 2023, followed by Toyota at USD270 billion (RM 1,252,125,000,000) and VinFast trailing behind with USD160 billion (RM 742,000,000,000).
On top of that, among other major manufacturers in the global arena, China’s BYD and Germany’s Volkswagen were at USD90 billion (RM417,420,000,000) and USD70 billion (RM324,660,000,000), respectively. Despite coming to the EV market late, VinFast has carved out a noteworthy presence in the U.S. stock market.
VinFast was also listed on the Nasdaq in mid-August. On the first day of trading, its market capitalization surpassed those of the long-established General Motors and Ford Motor in their home market so that makes this the second time Vietnam has seen a major success against the good ol’ U.S of A.
VinFast was established in 2017 and has been in the EV business since 2022. The company posted a net loss for 2022, and although its EV business has yet to turn a profit, some expect it to expand in the future. The company has already decided to build a plant in North Carolina so perhaps it is hopeful for the future as well.
However, many point to the small number of shares in the market as the reason for the rapid rise in its stock price since about 99 percent of VinFast shares are held by three companies, including its parent conglomerate, Vingroup. With few shares available to investors, the stock price is prone to wild swings so keep an eye out.