Experts Contend That VinFast Auto (VFS) is Still a Bubble Despite the Steep Fall From Its $200 Billion Market Cap

Photo of author
Written By Editor

Lorem ipsum dolor sit amet consectetur pulvinar ligula augue quis venenatis. 

It was just a matter of time in this continuous booming market that a shimmering brand-new EV stock ended up being the ephemeral beloved of the marketplace, just to see its fortunes reversed as peace of mind went back to the cumulative mind of financiers. Vietnam’s VinFast Auto (NASDAQ: VFS) just recently increased to abstruse heights mainly on the back of mispriced expectations and is presently in the procedure of going back to its reasonable market price, in a relocation that is similar to the prime times of the post-COVID duration.

For the advantage of those who may not know, Singapore-based VinFast uses 2 compact electrical SUVs – the VF6 and VF7 – in addition to 2 full-fledged eSUVs – the VF8 and VF9 designs – in the United States. The business’s production is mostly based within a “totally digital” $1.5 billion, 828-acre center on the Cat Hai island in Vietnam. The business provided around 11,300 EVs in the very first half of 2023, with the full-year shipment anticipated to emerge at around 25,000 systems. The business just recently went public by going through a reverse merger with the SPAC Black Spade Capital, with the stock of the combined business debuting on the Nasdaq exchange on the 15th of August, 2023.

Associated Story Lucid Group’s (LCID) EV Factory in Saudi Arabia Will Go Live Next Month as a Price War With Tesla Looms

This brings us to the core of the matter. At its peak towards completion of August, VinFast shares were altering hands at a cost of around $80, representing a peak market capitalization of $200 billion. Presently, the stock is trading at $16.30, which relates to a market cap of $37.51 billion.

According to experts such as the Future Fund’s Gary Black, VinFast’s reasonable worth lies at around $5 per share, relating to a market capitalization of simply $11 billion.

Meanwhile, VinFast shares are down 5 percent today as Black Spade Capital’s warrants have actually now ended up being exercisable, enabling their holders the chance to buy VinFast’s common shares at a repaired cost of $11.50 per share. Offered the substantial arbitrage included, it would make good sense for some speculators to purchase the business’s shares at the used discount rate and after that attempt to dump those shares in the marketplace.

Leave a Comment