VinFast’s Nasdaq Debut: A Surge in Shares and Ambitious Plans for the EV Market

The electric vehicle (EV) revolution continues to shape the automotive industry, with emerging players aiming to carve out their space in the market dominated by giants like Tesla. VinFast Auto Ltd., a Vietnamese EV manufacturer, recently made a splash in the financial world with its debut on the Nasdaq stock exchange. The company’s shares experienced a remarkable surge on their first day of trading, reflecting investor optimism and the potential of the EV industry in emerging markets.

VinFast’s Nasdaq debut was driven by a $23 billion backdoor listing, which saw the company merge with special purpose acquisition company (SPAC) Black Spade Acquisition. This strategic move not only gave VinFast a listing on a major stock exchange but also raised the company’s profile as it enters the global EV market. The stock opened at $22, more than double the $10 per share agreed upon with Black Spade Acquisition, which had valued VinFast at $23 billion. As the trading session unfolded, the shares continued to rise and closed at $37.06, placing the company’s valuation at a staggering $85 billion. This valuation momentarily surpassed well-established automakers like Ford and General Motors.

VinFast’s ascent on the stock market comes as the company aims to challenge industry leader Tesla. Founder Pham Nhat Vuong, Vietnam’s richest individual, has set ambitious goals for the company, including the construction of a $4 billion factory and a unique sales approach designed to attract dealers and customers alike. Vuong’s vision is supported by the fact that he is the beneficial owner of 99% of VinFast’s 2.3 billion ordinary shares through his flagship company and affiliated entities.

Chief Financial Officer David Mansfield shared the company’s future plans, stating, “We have a number of strategic investors and institutional investors lined up. We expect to formulate some kind of capital raising over the next 18 months, for sure.” This reflects VinFast’s intention to secure additional funds to support its expansion and innovation efforts.

Despite the promising debut, VinFast faces the challenge of establishing a foothold in competitive markets like North America and Europe. The company has already shipped nearly 3,000 vehicles to North America since late last year, but initial sales have been relatively slow. The American market, in particular, has seen registration of just 137 VinFast EVs through June, according to S&P Global Mobility.

To address this, VinFast is reevaluating its distribution model. CEO Le Thi Thu Thuy revealed that the company is transitioning from a direct-to-consumer approach, inspired by Tesla, to a hybrid model. This new approach involves opening showrooms and partnering with dealers in overseas markets, a strategy aimed at increasing accessibility and visibility for potential customers.

VinFast’s journey into the global EV market is underscored by the company’s commitment to innovation, expansion, and cost efficiency. The company’s investment in a $4 billion plant in North Carolina highlights its dedication to manufacturing excellence, while its pricing strategy aims to offer competitive options to consumers. VinFast’s VF8, priced at $46,000 in California, offers an alternative to the Tesla Model Y, even before accounting for a federal tax credit. 
Amid the complexities of the EV landscape, VinFast finds itself at the initial stages of a captivating and demanding expedition triggered by its debut on the Nasdaq. In a swiftly evolving EV sector, the company’s success hinges on its capacity to flexibly adjust, introduce fresh ideas, and resonate with consumers, all of which will shape its trajectory in a market defined by both cutthroat competition and revolutionary change.