Vietnamese electric vehicle manufacturer VinFast VFS concluded its first day of trading on the Nasdaq with an impressive market capitalization of approximately $86 billion.
What Happened: This valuation stands war higher than that of established American automotive giants like Ford Motor Co F and General Motors GM, whose market caps hover around $48 billion and $46 billion, respectively.
The noteworthy development transpired as VinFast commenced its Nasdaq trading journey on Tuesday subsequent to its SPAC merger with Black Spade Acquisition Co. This strategic move had initially valued VinFast at an equity worth of $23 billion.
By the day’s end, shares closed up 68.45% at $37.06, according to data from Benzinga Pro.
However, it’s worth noting that the majority of the company, 99% to be precise, remains under the ownership of its parent entity, resulting in only a limited number of shares available for trading. This characteristic could potentially expose the stock to heightened volatility.
Why It Matters: Founded in 2017 by billionaire Pham Nhat Vuong, VinFast is a member of the Vietnamese conglomerate Vingroup.
The company started with an electric scooter model in 2018 before expanding to traditional automobiles in 2019. It entered the U.S. market with the delivery of 45 VF 8 City Edition SUVs in March.
The company, however, is yet to make a profit.
VinFast, positioning itself as a rival to electric vehicle giants like Tesla Inc TSLA, has established a U.S. headquarters in Los Angeles and set up showrooms in California.
Check out more of Benzinga's Future Of Mobility coverage by following this link.
Read More: Tesla Offers Nearly 7% Off On Inventory Model S, X Vehicles In China
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