NEW YORK: Vietnamese carmaker VinFast was worth more than the much larger General Motors and Ford following its US stock market debut on Tuesday, reported German news agency (dpa).
The rise in the share price to US$37 on Tuesday meant a stock market value of around US$85 billion. Ford is currently worth just under US$48 billion, and General Motors about US$46 billion.
However, only a relatively small number of VinFast shares were traded, so there can be sharp price movements quickly. In after-hours trading, the share price fell again by more than 12 per cent.
Instead of an initial public offering (IPO), VinFast merged with an already listed shell company, Black Spade. The carmaker is still owned by billionaire Pham Nhat Vuong.
Other new car companies have achieved high stock market valuations initially. For example, electric truck manufacturer Rivian reached a stock market value of US$150 billion in November 2021. It is now just under US$20 billion after bottlenecks in the supply chain. – BERNAMA-dpa
