VinFast F9 Company VinCom Group Vietnam EV Maker Electric Vehicle TESLA Role

Shares of Vietnam’s EV maker, VinFast surge in Nasdaq debut

Vietnamese electric vehicle (EV) manufacturer VinFast’s debut on Nasdaq saw its shares (VFS.O) surge in value after a $23 billion backdoor listing. The EV maker has plans to attract global investors in the next 18 months. The stock opened at $22, double the $10 per share agreed with SPAC partner Black Spade Acquisition (BSAQ.A), valuing VinFast at $85 billion by session close. It surpassed Ford and General Motors in market capitalization. Despite limited trading, around $185 million worth of shares were exchanged.

VinFast’s founder, Pham Nhat Vuong, aims to challenge Tesla by constructing a $4 billion factory and adopting a novel sales strategy. Pham owns 99% of the company through his affiliates. The company plans to raise capital within 18 months through strategic and institutional investors. VinFast shipped nearly 3,000 vehicles to North America since last year. However, initial sales were slow, with only 137 EVs registered in the U.S.

VinFast shifting distribution model to defer from Tesla’s

VinFast is shifting its distribution model from Tesla’s direct-to-consumer approach to a hybrid model, collaborating with dealerships in foreign markets. This change aims to boost sales. VinFast CEO Le Thi Thu Thuy noted that the company will set up its showrooms. It will also partner with dealers for dealer-operated showrooms.

VinFast, an offshoot of Vingroup (VIC.HM), had investments totaling $9.3 billion from Vuong, Vingroup, and affiliates. Despite these investments, the company experienced financial setbacks. It reported a 49% drop in Q1 revenue YoY and a net loss of $598 million. Subsequently, the company posted a $2.1 billion loss in 2022. VinFast is constructing a $4 billion plant in North Carolina.

As VinFast enters American and European markets, it faces pricing pressures from competitors like Tesla and Chinese EV companies. Its VF8 model starts at $46,000 in California, competing favorably with the Tesla Model Y’s $47,740 price before federal tax credits. VinFast plans to launch the VF9 EV in the U.S. by year-end and seeks certification from Europe’s safety regulator. The reporting involved several individuals, including Phuong Nguyen, Yantoultra Ngui, Jaiveer Singh Shekhawat, Ben Klayman, and Noel Randewich, with editorial contributions from Kevin Krolicki, Conor Humphries, Mark Potter, Jonathan Oatis, and Sonali Paul.

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