Why Is VinFast Stock Falling Today?

VinFast Auto Ltd. VFS shares are falling on Tuesday on reports of a U.S. regulator investigation into a crash involving a VF 8 vehicle.

The National Highway Traffic Safety Administration (NHTSA) will reportedly probe certain events surrounding the April 24 incident, which tragically resulted in the deaths of a couple and their 13 and 9-year-old children, Reuters reported.

Pleasanton Police stated that the driver involved in the single-vehicle accident seemingly lost control, colliding with a sizable oak tree, with speed potentially contributing to the incident.

Apart from this, the company landed in hot waters following a complaint by real estate services firm SPG Center LLC, which indicates that VinFast is allegedly facing a lawsuit in a California court over unpaid rent for a store, although VinFast refutes the accuracy of the claim, Reuters reported.

According to SPG Center, VinFast leased premises in a Palo Alto shopping center from March 2023 but ceased payment from May 2023 until last month. 

The complaint, filed on May 14 in California’s Superior Court for Santa Clara County, alleges an outstanding balance of nearly $356,000, equivalent to twelve months’ rent.

“The allegation that VinFast has not paid rent from May 1, 2023, to April 1, 2024, is inaccurate,” VinFast said in a statement to Reuters.

“We have made monthly rent payments up to and including March 2024. We have suspended rent payments since April 2024 due to ongoing negotiations with the landlord to amend the lease agreement,” VinFast added.

VinFast is also under investigation for alleged patent violations regarding aluminium used in the VF8 from ArcelorMittal AMSYF. 

Additionally, two law firms filed a class action lawsuit against VinFast in April on behalf of shareholders, alleging financial losses due to misleading statements, Reuters added.

Price Action: VFS shares are trading lower by 10.3% to $5.67 at last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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