Vietnam’s pioneering electric vehicle (EV) manufacturer, VinFast, has catapulted to become the world’s third-largest automaker by market capitalization, following the footsteps of U.S.-based Tesla and Japan’s Toyota Motor.
Marking a phenomenal surge, the company’s shares experienced a remarkable 20% boost in the U.S. market on Monday. This soaring performance propelled VinFast’s market capitalization to an impressive $191.2 billion, as reported by CNBC. While the company’s operations in the U.S. are still gearing up, the electric vehicle frenzy in the market has spurred a wave of investments from individual shareholders.
According to FactSet data, global frontrunner Tesla led the pack with a staggering market capitalization of $760 billion as of August 25, trailed by Toyota at $270 billion. VinFast followed closely with an impressive $160 billion valuation.
In comparison, other prominent automotive giants like China’s BYD and Germany’s Volkswagen stood at $90 billion and $70 billion respectively. Despite entering the EV landscape later than many competitors, VinFast has made an indelible mark on the U.S. stock market.
Having debuted on the Nasdaq exchange in mid-August, VinFast made a resounding impact by swiftly surpassing the market capitalizations of long-established players like General Motors and Ford Motor in their domestic market.
Founded in 2017 and venturing into the EV sector in 2022, VinFast did post a net loss in 2022. Although the EV division is yet to achieve profitability, optimistic projections anticipate future expansion. Evidencing its commitment to growth, VinFast has already announced plans for a manufacturing facility in North Carolina. The company’s rapid ascent underscores the ever-evolving landscape of the global automotive industry and the potent role of electric vehicles in shaping its future.