VinFast Auto (VFS 0.48%) stock ripped higher Thursday morning and was trading up 21% as of 10:15 a.m. ET after the electric vehicle (EV) maker said it will display its highest-end model in Dubai at the annual United Nations summit on climate change, COP28.
VinFast to showcase its VF 9 EV at COP28
VinFast CEO Madame Le Thi Thu Thuy will join a panel discussion of global leaders to discuss green mobility solutions (among other things) at COP28, which will convene from Nov. 30 to Dec. 12 in Dubai. The EV maker will also showcase its VF 9 all-electric luxury SUV at the conference.
VinFast currently has five SUVs, and VF 9 is its highest-priced model with a starting price of $83,000 including battery and an EPA-certified range of 330 miles. The company started delivering VF 9 in its home market, Vietnam, in the first quarter of 2023 and has already made it available in the U.S., Canada, and Europe. That also means VinFast Auto is showcasing its EV for the first time in the United Arab Emirates (UAE) region.
Does that make VinFast Auto stock a buy?
VinFast Auto has seven passenger car models right now, with deliveries of two models expected to start in 2024. They include a C-segment SUV, VF 7, and a mini car, VF 3. The EV maker is already selling thousands of electric cars and e-scooters -- it delivered 21,300 EVs in the first nine months of 2023. VinFast is also constructing a plant in the U.S. and recently announced aggressive plans to expand its dealership network across the nation.
VinFast Auto shares, however, have been highly volatile since their initial public offering in the U.S. in August, largely because of a tiny free float that has attracted more speculators and traders than investors. That may also explain why the markets reacted so strongly today -- some perhaps even expect VinFast Auto to enter the UAE, a new market. It's nothing more than speculation, though, and it's better to be on the sidelines than to invest in a volatile stock on speculation.
