Vinfast worth more than Ford and GM after 19% stock drop

Vietnamese EV maker VinFast’s Nasdaq debut Tuesday was remarkable. The automaker, which went public after merging with Black Spade Acquisition, saw shares rise 68% to $37.06, valuing it at $86 billion, far above Ford, GM, and Stellantis.

Wednesday was the real surprise. VinFast still had a market cap ahead of other automakers after its stock price fell 18.75% to $30.11.

It’s a surprising valuation for a young EV startup that delivered 11,300 vehicles in the first half of 2023. Its fundamentals show a company with expensive ambitions that outweigh revenue. VinFast plans to build a $2 billion EV factory in North Carolina and open showrooms in California and other states to enter the U.S. retail and production markets.

What drives investor volatility and interest? The next Tesla search is important. There may be other reasons. The WSJ reported that 90% of SPAC investors pulled their money before the deal was completed. Fewer traded shares allow for big price swings.

VinFast shares will remain volatile. The real test will be in the coming years as VinFast scales production and sells Americans on its EVs. Since VinFast’s VF8 EV has been criticized for everything from ride quality to not working, that could be difficult.