Yesterday, the stock of Vietnam EV maker VinFast traded as high as $46.98 before combining some gains to close at $36.72.
Pham Nhat Vuong, founder of VinGroup, who has the EV firm controlled by 99%, says the tiny amount of publicly available shares has made the stock prone to volatility, which has also climbed or slumped by 14% or more daily over the past six sessions.
In the previous week, VinFast stock ended up eroding almost 60% of its debut gains, which were estimated to reach a share price of over $15.
However, VinFast stock was the second highest on trading website Stocktwits “Trending” list on Tuesday, suggesting it has allured the interest of various investors.
Recently, it was estimated that about $428 million worth of VinFast shares had been traded as of mid-day, in comparison to Tesla’s turnover, which was forecast to be over $17 billion.
“Having sold just about 11,300 EVs in the first half of 2023, VinFast’s current share price is trading at about 47 times its sales for the year,” Barron, a newspaper and magazine publisher, reported.
However, the US investment advisor said VinFast stock is too expensive at its current value, which is expected to trade lower in the upcoming months.
The electric vehicle companies in the US, including Faraday Future, Nikola, and Lucid, seeing massive early gains after SPAC listings, have noticed their shares downshift subsequently, triggering an increase in US regulatory inspection.
Lucid, which initially went public with a $24 billion SPAC valuation in 2021, is now valued at less than $15 billion, approximately 40% less.
- Published By Team Genuine Reporter