What's Going On With VinFast Auto Stock?

The VinFast Auto Ltd VFS story continues to unfold. Shares of the Vietnamese EV maker have been extremely volatile since the company made its debut on the Nasdaq last week. Here's a look at what's going on. 

What To Know: Following a successful business combination with Black Spade Acquisition Co, Vinfast made its public debut last Tuesday. Shares surged approximately 270% in its first day of trading before pulling back. The stock has continued to bounce around since.

CNBC reported that the SPAC only opened up approximately 1% of the float to outside investors. The other 99% is reportedly owned by the company's founder Pham Nhat Vuong.

VinFast is a popular name in Vietnam, but the company has struggled to gain traction in the United States. VinFast had delivered close to 19,000 vehicles as of June 30 and is focused on global expansion. 

Tuesday's resurgence appears to be partly driven by reports suggesting the company's magnet supplier is investing $80 million in a new factory in Vietnam to double output. South Korea's Star Group Industrial (SGI) reportedly told Reuters of the investment and said production is expected to start in 2024. 

VinFast has grabbed the attention of retail traders since going public, which appears to be increasing volatility. The stock was among the top trending tickers on Stocktwits at last check. 

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VFS Price Action: VinFast shares were up 74.4% at $30.66 at the time of publication, according to Benzinga Pro.

Photo: Paul Brennan from Pixabay.