EV Maker VinFast Auto’s ($VVFS) Share Price Doubles Despite Weak Fundamentals

EV maker VinFast ($VVFS) surged by nearly 200% this week but analysts are skeptical about the underlying strength of the stock

2 Min Read

VinFast Auto Ltd. ($VFS) gained nearly 200% in share price value yesterday,  pushing the market cap to over $90B. The closing price of $36.72 was still short of the post-SPAC high of $46.98 as the wild swings continued for the electric vehicle stock.

Volume on VFS topped 18K shares for the session, outdone only by Tesla ($TSLA) and Toyota ($TM) in the automotive sector. Wall Street analysts are yet to post any ratings on VinFast ($VVFS)

$VFS manufactures and exports a portfolio of e-SUVs, e-scooters and e-buses across Vietnam, North America, and they plan to expand to Europe in the very near future. The company claims to operate a state-of-the-art automotive manufacturing complex in Hai Phong that boasts up to 90% manufacturing automation and an annual production capacity of up to 300K units per year in phase 1.


$VVFS Monthly Chart
$VVFS Monthly Chart

With the massive surge printed this month, caution must be exercised going forward, as a pull-back before a continuation may be on the cards.

The rally may be a result of a low-float stock with high volatility, and the near $100 billion market cap does not justify the company’s growth prospects for the foreseeable future.

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