A Vietnamese company has become the third most valuable car manufacturer in the world overnight

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VinFast

Shares of Vietnamese electric vehicle maker Vinfast surged by 21% this week, continuing the momentum from last week’s rally. The company, which recently made its debut on Wall Street, witnessed an impressive quadrupling of its market value to $160 billion.

This surge has positioned Vinfast as the third most valuable automaker globally, trailing only behind Tesla and Toyota. In contrast, other major car manufacturers like Mercedes-Benz, BMW, or Volkswagen currently have a smaller market capitalization.

However, the relatively limited number of publicly available Vinfast shares has made the stock susceptible to volatility, with fluctuations exceeding 14% in 11 out of the last 12 trading sessions. On Monday, the stock was on track to increase its market capitalization by nearly $33.6 billion, based on a share price of $83.33.

Vinfast is predominantly controlled by Pham Nhat Vuong, Vietnam’s wealthiest individual and the founder of the parent conglomerate Vingroup, with a stake of approximately 99.7%, as per a filing.

Despite the market’s enthusiasm, Vinfast faces a significant journey ahead before it can effectively compete with Tesla and established automakers. These industry giants are investing substantial sums to secure a share of the electric vehicle market.

In the United States, for instance, only 137 Vinfast EVs were registered as of June, according to S&P Global Mobility. Vinfast is entering the US and European markets during a period when demand for electric vehicles is tapering off, and Tesla has initiated a price war to protect its market dominance.

Vinfast’s projection for this year is to sell up to 50,000 electric vehicles, in stark contrast to Tesla’s estimate of 1.8 million cars. To stimulate sales, Vinfast is deviating from Tesla’s direct-to-consumer approach and is turning to dealers. Additionally, the company is in the process of constructing a $4 billion plant in North Carolina.

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