The little-known Vietnamese electric vehicle maker that’s now valued at more than Ford or GM

EV maker, which has been in losses, opened at $22 but closed above $37 each in first day of trading

Electric Carmaker-North Carolina (AP)

Vietnamese electric vehicle (EV) manufacturer VinFast made an eye-popping debut on Nasdaq with its stock market valuation soaring above giants such as Ford and General Motors (GM) on its first day of trading.

The EV maker, which has been in losses so far, opened at $22 (£17) but closed above $37 (£29) each in its first day of trading, surging its market valuation to a staggering $85bn (£66bn) – much higher than Ford’s $48bn and GM’s $46bn.

The company's shares skyrocketed following its $23bn (£18bn) backdoor listing, after the startup merged with a special purpose vehicle. The company said it intends to raise funds from global investors in the next 18 months.

“We have a number of strategic investors and institutional investors lined up. We expect to formulate some kind of capital raising over the next 18 months, for sure,” VinFast chief financial officer David Mansfield told Reuters.

About $185m (£143m) worth of the company’s shares were exchanged, according to Refinitiv data.

The eye-popping listing has also soared chairman Pham Nhat Vuong’s net worth by a remarkable $39bn. Mr Vuong, Vietnam’s richest man, established VinFast in 2017, headquartered in Singapore, and the company is part of his conglomerate organisation Vingroup, one of the largest private conglomerates in Vietnam.

He is the beneficial owner of 99 per cent of VinFast‘s 2.3 billion ordinary shares after the merger through his flagship company and affiliates. Now, he aims to take on the industry leader Tesla with his ambitious plans for VinFast’s future.

“We have a number of strategic investors and institutional investors lined up. We expect to formulate some kind of capital raising over the next 18 months, for sure,” VinFast chief financial officer David Mansfield said.

Initially, the company received a lukewarm response from the North American market after only 137 VinFast EVs were registered until June despite the company shipping nearly 3,000 vehicles into the market since late last year, according to S&P Global Mobility.

However, with a $4bn factory under construction and a fresh approach to sales strategies, VinFast aims to compete on the global stage in the electric vehicle market.

VinFast CEO Le Thi Thu Thuy said the company was changing its distribution model, which had been based on Tesla’s direct-to-consumer approach, and expected to partner with dealers in overseas markets.

“We are switching to a hybrid model where we have our own showrooms, as well as talking to dealers to open dealer showrooms,” Mr Thuy told Reuters.

VinFast is stepping into the American and European EV markets at a time when pricing pressures are being exerted by leading industry player Tesla and various Chinese companies.

Mr Thuy said VinFast expected to bring its larger VF9 EV to the US market toward the end of the year and was in the process of getting its cars certified by Europe’s safety regulator.

The company, originally a part of Vietnam’s largest conglomerate Vingroup, has attracted significant investment from Vuong, Vingroup, and affiliated entities, amounting to $9.3bn, according to a June filing.

Additional reporting by agencies