What happened
Shares of VinFast Auto (VFS -3.35%), the Vietnamese electric vehicle (EV) start-up that made a stellar market debut one week ago, skyrocketed today and were up 94% as of 11 a.m. ET. VinFast's market capitalization shot past $70 billion today as investors lapped up a big update from the company.
So what
VinFast has announced that the U.S. Environmental Protection Agency (EPA) range ratings for its new all-electric seven-seater VF 9 SUV have surpassed the company's own initial estimates.
Specifically, the VF 9 Plus version priced at $83,000 has been certified with an EPA range of 291 miles, while the Eco version ($91,000) has a certified EPA range of 330 miles when fully charged.
VinFast has already started deliveries of VF 9 SUVs in Vietnam and is taking reservations globally. It expects to start deliveries in North America in the fourth quarter of 2023.
Now what
VinFast is part of Vingroup, the largest conglomerate in Vietnam, It produced its first EVs in 2021 and sent its first shipment to North America in November 2022.
It currently sells five SUV models, the VF 5 through the VF 9. Except for the VF 5, which is sold only in Vietnam, all models are available for reservations and sale in the U.S., Canada, and Europe. VinFast had delivered a total of 3,800 EVs by April this year and had total reservations of 45,000 EVs as of May 13.
The VF 9's EPA range might be impressive, but it remains to be seen how it stacks up in an intensely competitive global EV market, especially with its high price tags. To be fair, unlike some EV start-up stocks that debuted in the U.S. in the pre-production phase, VinFast already has its cars out on the roads.
Yet the stock's dizzying rally and valuation are reminiscent of the EV hype of 2021 that saw stocks like Rivian and Lucid Group skyrocket on debut, only to fizzle out in later months.
