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Shares of electric-vehicle startup VinFast Auto Ltd. fell 4.1% to $9.39 Tuesday, taking the stock well below the $22 listing price when the company made its Nasdaq debut just seven weeks ago.
Shares of VinFast
VFS,
soared in August after the company went public through a special-purpose acquisition company deal, taking its market cap to an eye-watering $231.3 billion on Aug. 25 — easily surpassing established automakers such as Ford Motor Co.
F,
and General Motors Co.
GM,
VinFast’s market cap is now $22.86 billion.
VinFast shares, which are on a three-day losing streak, ended Monday’s session down 21.6% for their largest single-day percentage decline since Sept. 7, when they fell 26.6%. The stock is down 90% from its 52-week high of $93 on Aug. 28.
In a filing Monday, VinFast said that insiders will sell some of their shares moving forward, the Wall Street Journal reported. Few VinFast shares have been left available for trading following heavy withdrawals by investors in the company’s SPAC deal, according to the Journal.
Last month VinFast saw its market capitalization fall more than $140 billion in less than two weeks, weighed down by a six-day losing streak for the company’s stock.
The EV maker is a majority-owned affiliate of Vietnamese conglomerate Vingroup, one of the largest publicly traded companies in Vietnam. VinFast said that as of June 30, 2023, the company has delivered close to 19,000 EVs.
Related: EV startup VinFast may be worth more than Ford or GM, but there’s a catch
About 99% of VinFast shares are controlled by Vingroup chair and VinFast founder Pham Nhat Vuon, making only a small portion available to investors. The small number of shares available for trading also means that big swings are common.
VinFast last month reported a quarterly loss of half a billion dollars and said it delivered more than 9,000 electric vehicles globally for sales of about $315 million in the quarter.
VinFast is importing its vehicles into the U.S. and is also ramping up its North American presence. In July, the company broke ground on an electric-vehicle manufacturing site in Chatham County, N.C. The startup said the plant will eventually have the capacity to make 150,000 vehicles a year.
Claudia Assis contributed.
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