Shares of VinFast Auto (NASDAQ: VFS) fell in early U.S. trading. The Vietnamese electric vehicle maker’s shares had soared 255% in their debut on the NASDAQ.
In the previous session, VFS had a market capitalization of up to 85 billion USD, more than American auto giants such as Ford Motor Company (NYSE: F) and General Motors (NYSE: GM).
Founded as a unit of Vietnam’s largest conglomerate Vingroup (HM:VIC), VinFast is targeting the US market for its electric vehicles, competing directly with billionaire Elon Musk’s Tesla (NASDAQ:TSLA). Instead of following Tesla’s strategy of simply bringing products directly to consumers, VinFast plans to cooperate with foreign dealers.
Some strategic and institutional investors have had to “queue up,” said CFO David Mansfield.
Currently, VinFast will have to double its year-to-date sales to achieve its target of selling 50,000 units by 2023.
VinFast may need to cut prices on its electric vehicles to compete with Tesla’s recent strategy. This policy has boosted sales but threatened Tesla’s profit margins. In addition, this has raised concerns about a price war heating up in the Chinese market.
Electric car giant Tesla now has a market capitalization of about $739 billion.
Source
Comment (0)