How a small EV maker became more valuable than Ford and General Motors combined
General Motors Co. and Ford Motor Co.
in its dust.
Shares of Vietnam’s VinFast Auto have soared almost 700% since it listed in mid-August — even though it hasn’t made many cars yet, let alone turned a profit.
Here’s how VinFast suddenly became one of the world’s most valuable carmakers — and how it could come undone again.
What happened?
On Aug. 15, unprofitable Vietnamese EV-maker VinFast, owned by the country’s richest man, made its debut on the Nasdaq Global Select Market index.
It is now worth just under $200 billion, more than GM and Ford combined and trailing only Tesla Inc. and Toyota Motor Corp among carmakers.
What caused the share price surge?
The biggest reason: scarcity.
Just 1% of VinFast’s shares are available for trading. That means if a buyer snaps up a large enough chunk of those few shares, it can have an outsize effect on the stock’s overall price.
It also has landed on the radar of retail traders, a cohort enamored of EV makers.
Who owns the other 99%
Regulatory filings show Pham Nhat Vuong, Vietnam’s richest man, controls 99% of the company’s outstanding shares, partly via shares held by his wife and the conglomerate Vingroup JSC.
Is VinFast profitable?
No — and that’s not that surprising for such a young company, particularly considering making cars is an extraordinarily capital-intensive business. According to a June regulatory filing, VinFast lost $598.3 million in the three months through March 31, while it generated revenue from vehicle sales of $65.1 million during the same period.
The company said it expects more operating losses in the near term as it scales vehicle production, sets up factories and pays for marketing, sales and servicing efforts.
How many cars has the company actually sold?
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