VinFast of Vietnam is valued more highly in EVs than Ford and GM.

Vietnamese electric vehicle (EV) manufacturer VinFast has surpassed Ford and General Motors (GM) in stock market valuation on its trading debut in New York. Despite not having turned a profit yet, VinFast’s shares closed at over $37 each, resulting in a market valuation of $85 billion, significantly higher than Ford’s $48 billion and GM’s $46 billion. This development comes as established automakers and newer EV manufacturers vie for a share of the growing electric vehicle market.

The trading activity of VinFast was relatively moderate on its first day, with around $185 million worth of shares changing hands. The company used a special purpose acquisition company (SPAC) to go public, a common strategy to expedite the process of taking a private company public. Unlike some other EV start-ups that went public through SPACs, VinFast’s connection to Vingroup, Vietnam’s largest conglomerate, has provided access to funding and a proven track record of growth.

While VinFast faces competition from established players like Tesla and BYD, experts believe that the company has laid a solid foundation for success in the EV market. In the first half of the year, VinFast delivered 11,300 EVs, a significantly lower number compared to Tesla’s delivery of over 889,000 vehicles during the same period. Analysts predict that Tesla will remain the dominant force in the EV industry, but there will also be room for other successful players like VinFast.

Bill Russo, CEO of Automobility, noted that investors are optimistic about the future of electric vehicles and see potential in low-cost East Asian countries like Vietnam as competitors in the US market. Despite the challenges of the EV industry, including fierce competition and the need for sustainable profitability, VinFast’s initial success in the stock market indicates that it has managed to capture the attention and confidence of investors.

In conclusion, VinFast’s remarkable stock market debut has positioned the Vietnamese EV maker as a significant player in the competitive electric vehicle market, despite facing stiff competition from industry giants.