VinFast Auto Ltd. (NASDAQ:VFS) rallied 20.29% in late morning trading on Monday and carved out a new high of $89.00 early in the session. The market cap for the Vietname maker is higher than the caps of established giants like Honda Motor (HMC) and Stellantis (STLA) combined. The share price gain on VFS just for Monday represented more in market cap than the entire valuation for Rivian Automotive (RIVN). A very low percentage of tradeable VinFast (VFS) shares in comparison to total shares outstanding has impacted the outsized buying frenzy that has made the automaker the third most valuable in the world.
VinFast (VFS) debuted on the Nasdaq on August 15 following the completion of a business combination with Black Spade Acquisition Co. The electric vehicle maker has delivered close to 19K EVs including the VF e34, VF 5, VF 8, and VF 9 models, as of June 30. It is also preparing for the upcoming launch of the VF 3, VF 6, and VF 7 models in the Vietnamese and global markets.
On Seeking Alpha, analyst SL Investments issued a Strong Sell rating on Friday. “VinFast’s stock is trading at irrational levels and should be avoided due to uncertain production schedules, low trading volume, and unsustainable valuation,” warned SL Investments.