VinFast Auto, a Vietnamese electric-vehicle maker, experienced a sharp decline in its stock prices after it began trading on the market. During midday trading on Friday, the stock plummeted by 24% to $15.10, ultimately wiping out the gains it had made in the previous days.
This decline comes as a disappointment to many investors, as VinFast’s shares had reached a high of $38.78 just a few days earlier. This surge in value had given the company a market capitalization of $87 billion, surpassing prominent automakers like General Motors and Ford.
However, since that peak, VinFast’s stock has seen a substantial downturn. Just yesterday, it fell by 34%, closing at $20.
News of VinFast’s rocky entry into the U.S. market further dampened investor confidence. The Wall Street Journal reported on Thursday that the company had encountered issues with its electric vehicles in the U.S., leading to a recall of approximately 1,000 vehicles due to a display screen problem.
In Summary:
- VinFast Auto’s stock takes a hit, declining by 24% after it begins trading.
- Previous gains are negated as shares fall sharply over the past few days.
- The company’s market capitalization initially surpassed that of General Motors and Ford.
- News of a recall of 1,000 vehicles in the U.S. due to display screen issues further impacts investor sentiment.
