VinFast Auto Ltd., a prominent electric-vehicle startup, experienced a significant setback on Tuesday as its shares plummeted by 4.1% to $9.39. This drop dragged the stock well below its listing price of $22 during its Nasdaq debut merely seven weeks ago.
During August, shares of VinFast (VFS) enjoyed a remarkable surge following the company’s public offering through a special-purpose acquisition company deal. This surge propelled its market capitalization to a staggering $231.3 billion on August 25, surpassing well-established automakers such as Ford Motor Co. (F) and General Motors Co. (GM). However, the current market cap for VinFast stands at $22.86 billion.
Unfortunately, VinFast shares are currently in the midst of a three-day losing streak. On Monday, the stock closed down by 21.6%, marking its most significant single-day percentage decline since September 7 when it fell by 26.6%. As a result, its current value is now 90% lower than its 52-week high of $93 on August 28.
Related: VinFast’s Market Cap Plummets Over $140 Billion as EV Maker Faces Week-Long Nosedive
According to a filing made by VinFast on Monday, insiders of the company plan to sell some of their shares moving forward. The Wall Street Journal reported that this decision comes after heavy withdrawals by investors participating in the company’s SPAC deal. As a result, the availability of VinFast shares for trading has significantly decreased, as confirmed by the Journal.
VinFast Faces Market Downturn, but Continues to Expand
VinFast, the electric vehicle (EV) maker and a subsidiary of Vietnamese conglomerate Vingroup, experienced a significant decline in its market capitalization last month. Within a span of just two weeks, the company’s value plummeted by over $140 billion due to a six-day losing streak in its stock.
Despite this setback, VinFast remains a prominent player in the EV industry. As of June 30, 2023, the company has successfully delivered nearly 19,000 EVs. However, it’s worth noting that the majority of VinFast shares are owned by Vingroup chair and VinFast founder, Pham Nhat Vuon, leaving only a small portion available for public trading. Consequently, the limited availability of shares often contributes to substantial volatility in the market.
In its most recent financial report, VinFast disclosed a quarterly loss of $500 million. Nevertheless, it managed to generate approximately $315 million in sales through the delivery of over 9,000 electric vehicles worldwide.
Moreover, VinFast has ambitious plans to expand its presence beyond Vietnam. The company is currently importing its vehicles into the United States and has begun making strides in North America. In July, VinFast broke ground on an electric-vehicle manufacturing site located in Chatham County, North Carolina. With an expected annual production capacity of 150,000 vehicles, this facility represents a key milestone for VinFast’s growth strategy.
VinFast’s continued commitment to innovation and expansion underscores its determination to solidify its place as a major player in the global EV market.