How is this Vietnamese car maker worth more than Ford and GM combined?!
An obscure Vietnamese Electric Vehicle maker became more valuable than General Motors and Ford combined at the end of August. But why?
VinFast went through a SPAC merger on August 14th.
After the merger 99% of the shares were left in the founders hand, leaving only a small number of shares available for public trading.
This scarcity, which would allow anyone buying enough shares to move the market, alongside retail trader hype, saw the share price rise 800% in just two weeks, leaving VinFast with a reported market cap of over $200 billion.
This despite the company posting $2 billion of losses last year, and $598 million in the first 3 months of this year and only 24,000 cars sold.
It has since crashed back down over 50% but still remained one of the biggest gainers of the month.
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