VinFast Is Going Public: What Investors Should Know About Tesla Rival, Third Largest SPAC Deal

Electric vehicle (EV) company VinFast is going public via SPAC merger in a deal announced Friday morning. Here are the key details.

The SPAC Deal: VinFast announced a SPAC merger with Black Spade Acquisition Co BSAQ. The deal comes as VinFast previously filed for an initial public offering in the U.S.

The merger values VinFast at an enterprise value of $27 billion, which makes it the third-largest SPAC merger in history, according to SPAC expert Julian Klymochko.

Related Link: Tesla's Vietnamese Challenger VinFast Rides Into US With First Deliveries

VinFast expects the merger to close in the second half of 2023. The company's existing shareholders will own around 99% of the combined company after the merger.

“VinFast has demonstrated their execution excellence by building up a maximum production facility of up to 300,000 electric vehicles a year and having a full range of beautifully designed high quality EVs, all within the span of a few years,” Black Spade Acquisition Co-CEO Dennis Tam said.

About VinFast: Founded in 2017, VinFast is a member of the Vietnamese conglomerate Vingroup. The company started with an electric scooter model in 2018 before expanding to traditional automobiles in 2019.

ICE vehicle production was halted in latte 2022 as VinFast went all-in on electric vehicles.

The company has a portfolio that includes electric SUVs, electric scooters and electric buses. The company exports its products across Vietnam and North America with plans to expand to Europe “soon.”

“VinFast has already demonstrated the ability to quickly reach international markets. The partnership with Black Spade and listing of VinFast in the U.S. represents the perfect capital raising avenue for our future global ambitions and is also an important accomplishment for Vingroup,” VinFast Auto Global CEO Madame Thuy Le said.

The company has delivered four EV models to customers in Vietnam and delivered its first units to North America earlier this year with the VF 8 model.

Future Growth: A state-of-the-art manufacturing facility in Vietnam has 90% manufacturing automation and will be able to produce up to 300,000 units in its first phase.

Future growth includes launching its vehicles in Europe. A manufacturing facility in North Carolina that is set to break ground is expected to help with growth in North America.

“VinFast is well positioned to take advantage of the EV lifestyle trend and we are very excited about the future potential growth of VinFast in Vietnam and globally,” Tam said.

VinFast, a competitor to EV companies such as Tesla Inc TSLA, has a U.S. headquarters in Los Angeles and showrooms in California — one of the stronghold states of Tesla and the site of one of its key manufacturing facilities.

With a headquarters in Vietnam, VinFast also has access to the Asian market, which is highly competitive and has seen Tesla cut prices in a move to gain market share.

The VF 8 electric SUV is seen as a competitor to the Model Y from Tesla, which is one of the bestselling vehicles globally.

BSAQ Price Action: Black Spade Acquisition shares are up 1% to $10.38 on Friday. 

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Image: VinFast