VinFast, the Vietnamese electric vehicle maker, made its Nasdaq debut on Tuesday and saw its shares soar following its $23 billion backdoor listing. The stock opened at $22 per share, more than double the $10 per share agreed with its special purpose acquisition company (SPAC) partner, Black Spade Acquisition. This valued VinFast at $23 billion. VinFast’s Chief Financial Officer, David Mansfield, stated that the company expects to raise money from global investors within the next 18 months.
VinFast, founded by Vietnam’s richest man, Pham Nhat Vuong, aims to challenge industry leader Tesla with its $4 billion factory under construction. The company is also planning to change its distribution model. VinFast initially followed Tesla’s direct-to-consumer approach but will now partner with dealers in overseas markets.
Despite the successful debut, VinFast’s trading volume was relatively low, with only 0.16% of shares changing hands in the first three hours of trading. VinFast has shipped nearly 3,000 vehicles to North America since late last year, but initial sales have been slow. As of June, only 137 VinFast EVs had been registered in the United States. VinFast hopes to boost its sales by entering the American and European markets, although it faces tough competition from established players like Tesla.
VinFast’s first-quarter revenue dropped 49% from the previous year, resulting in a net loss of $598 million. In 2022, the company posted a loss of $2.1 billion. To optimize costs, VinFast plans to move towards cost reduction in the future.
VinFast’s larger VF9 EV is expected to enter the U.S. market towards the end of this year, while the company is in the process of getting its cars certified by Europe’s safety regulator.
VinFast was formed as a unit of Vietnam’s largest conglomerate, Vingroup, with Vuong and affiliates investing $9.3 billion in the EV maker. Vuong pledged $2.5 billion, including $1 billion from his personal fortune, to support the company.
Overall, VinFast’s strong debut on Nasdaq signals investor confidence in the company’s growth potential as it aims to establish itself in the competitive global EV market.