VinFast (NASDAQ:VFS), the Vietnamese electric vehicle manufacturer, witnessed an impressive surge in its stock value, more than doubling on Tuesday. This remarkable upswing follows the company’s significant market entry on Wall Street. The surge was catalyzed by a Reuters report disclosing South Korea’s Star Group Industrial’s intentions to establish a manufacturing facility in Vietnam.
In this latest instance of market volatility, VinFast’s stock soared by a remarkable 127% to reach $40.24, marking a substantial milestone and pushing its market capitalization to an impressive $95 billion. Notably, the stock even peaked at $46.98 earlier in the trading session.
The previous Tuesday marked the company’s entry onto the U.S. stock market, accompanied by its strategic collaboration with SPAC partner Black Spade Acquisition. Starting with an opening price of $22, the company garnered considerable attention despite its current challenges with generating profit.
Founder Pham Nhat Vuong’s 99% ownership of the electric vehicle firm has contributed to the stock’s susceptibility to volatility, due to the limited availability of publicly traded shares. Over the course of the past six sessions, the stock has demonstrated drastic fluctuations, with daily surges or drops of up to 14%.
On Tuesday, VinFast’s stock secured the second-highest position on the “Trending” list of the Stocktwits trading platform, indicating a growing interest from individual investors. The trading volume for VinFast’s shares reached approximately $428 million by mid-day, a noteworthy figure in comparison to Tesla’s daily turnover of over $17 billion.
Recent reports have highlighted South Korea’s Star Group Industrial’s strategic investment of $80 million in a new production facility in Vietnam, with operations set to commence in 2024. This move is perceived as a proactive measure against potential trade restrictions from China, as the company supplies magnets not only to VinFast but also to South Korea’s Hyundai Motor.
The confluence of these factors has undoubtedly stirred significant market enthusiasm around VinFast, propelling it to the forefront of investors’ attention and conversations.
Featured Image: Unsplash @ Cook aynne
