Vietnamese electric vehicle (EV) manufacturer VinFast saw its valuation surpass that of legacy US carmakers Ford and General Motors (GM) on its first day of trading on Nasdaq yesterday (Aug. 15).
VinFast, which debuted its first two gasoline-powered car models at the Paris Motor Show to accolades in 2018, has been producing and exporting two- and four-wheelers in the EV segment in its homeland since 2021, and abroad since the end of 2022.
The loss-making company’s finances are still in the red with losses upwards of half a billion dollars, but it has several things going for it: a deep-pocketed backer in parent company Vingroup, spearheaded by Vietnam’s richest man Pham Nhat Vuong; a rapidly rising economy; and the growing opportunity to replace China as the world’s factory.
VinFast is “not in a rush” to raise additional capital, finance chief David Mansfield said after the listing, but it is in talks with sovereign wealth funds and other investors about additional investment, which could be finalised in the next 18 months.
$85 billion: VinFast’s valuation at close, beating Ford and GM, both of whom are valued under $50 billion
read more: