What happened
It's only been 10 days since VinFast Auto (VFS -3.35%) stock started trading in the U.S. after going public through a special purpose acquisition company, but its run-up since its initial public offering (IPO) has stunned the markets. This week alone, the electric vehicle (EV) stock is up a jaw-dropping 312% through 10 a.m. ET Friday, according to data provided by S&P Global Market Intelligence.
So what
VinFast is part of Vietnam's largest conglomerate, Vingroup, owned by billionaire Pham Nhat Vuong. The EV maker started to create a buzz much before its IPO when it said it expects to grow sales significantly this year as it strives to break into the U.S. and European markets. VinFast already has a leading market share in Vietnam's passenger EV market, according to BNI Research.
Earlier this week, VinFast stock doubled in one day after it gave EV enthusiasts a glimpse into the kind of electric cars it's making. VinFast announced the U.S. Environmental Protection Agency's (EPA) range ratings for its new all-electric seven-passenger SUV, VF 9, surpassed the company's own estimates. VinFast said its VF 9 Eco trim has a certificated EPA range of 330 miles while the Plus trim has a certified EPA range of 291 miles. The models are priced at $83,000 and $91,000, respectively, and are equipped with advanced driver assistance systems.
Importantly, VinFast said that while the VF 9 is already available for sale in Vietnam, it expects to export the model to North America this year. This will be the second VinFast model for North America. So far, it has shipped two batches of its VF 8 compact SUV to the market.
VinFast also released some important numbers this week to give the markets an idea about its production and sales. Specifically, VinFast delivered 11,300 EVs in the first half of 2023 and has 26,000 EV reservations as of June 30. As of that date, the company has 122 showrooms for electric cars, including some in Europe, and double the number of showrooms, dealers, and workshops for e-scooters.
Now what
VinFast currently has an annual production capacity of 300,000 units and expects to add another 150,000 units to its capacity if its first factory in the U.S. starts production in 2025 as planned. The North Carolina facility is also VinFast's first EV factory outside of Vietnam.
These updates, of course, gave the markets a lot to chew on, and VinFast stock kept surging higher and higher this week. Its market capitalization has surpassed $130 billion already. Can this EV stock live up to the hype? You may want to learn more about VinFast Auto and the stock's valuation to find an answer to that question.
