VinFast (NASDAQ:VFS) Plunges 40% as Investors Wake Up - TipRanks.com
Electric vehicle stock VinFast experienced a steep decline, plunging nearly 40% after a rapid rise that puzzled analysts, highlighting the volatility of the stock.
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Posted 8/29/2023, 7:18:34 PM
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Relevant topic timeline:
Main topic: VinFast's remarkable debut on the Nasdaq public exchange and its ambitious plans to break into the U.S. marketplace.
Key points:
1. VinFast's stock price soared 68% on its debut, giving it a valuation of $86 billion, surpassing established automakers like Ford, GM, and Stellantis.
2. Despite a subsequent drop in stock price, VinFast still maintains a market cap ahead of other automakers.
3. VinFast aims to enter the U.S. market by building a $2 billion EV factory in North Carolina and opening showrooms in California and other states.
Hint on Elon Musk: Elon Musk is the CEO of Tesla, a prominent electric vehicle manufacturer, and the search for the next Tesla may be driving investor interest in VinFast.
VinFast's shares more than doubled after it was reported that South Korea's Star Group Industrial plans to open a factory in Vietnam, boosting the Vietnamese electric vehicle maker's market capitalization to $95 billion.
VinFast Auto stock experiences a 109% surge, attracting traders, but it remains a puzzling phenomenon.
VinFast, a Vietnamese electric vehicle maker, has seen a significant increase in its market cap, surpassing that of major firms such as Walgreens Boots Alliance, Goldman Sachs, and 3M, leading to concerns about its valuation. One factor that may have justified the rising prices is the potential construction of a factory by one of VinFast's key suppliers, Star Group Industrial, which would provide easier access to magnets and facilitate faster production of vehicles. However, there are doubts about the sustainability of VinFast's recent sharp rises in stock prices.
Electric-vehicle startup VinFast's market capitalization has surpassed established automakers like Ford and General Motors after its shares surged following a special-purpose acquisition company deal, although the company's business results must eventually justify its valuation, according to industry analysts.
VinFast Auto's stock price dropped over 31% due to a reality check after a strong rally, but it remains the third most valuable automobile stock with a market cap of around $95 billion; analysts warn of unsustainable valuation and advise against investing in it.
Vietnamese EV start-up VinFast's stock plunges, losing $90 billion in market value.
VinFast Auto, a Vietnamese EV start-up, offers valuable lessons about the stock market through its wild trading, teaching seasoned traders in just a short period of time.
Shares of Tesla Inc. rose 2.7% to buck the trend of weakness in the electric vehicle market, as the stock looks to rally over 20% above its recent low.
U.S. markets experienced a drop on Tuesday, with VinFast Auto seeing the largest decline.
Tesla's stock slid 1.78% as the overall stock market experienced a rough trading session.
VinFast Auto stock is experiencing a sharp decline due to a significant quarterly loss, despite a positive forecast for the full year.