To The Moon

🌟🌟🌟Welcome to the exciting world of $VinFast Auto(VFS)$  which has seen its share price soared as much as 250% in just 1 day but today it hit the skids as its share price plummeted 43%.  At its peak of USD 93 per share on Monday, VinFast almost hit USD 200 billion in market capitalisation, making it the 3rd most valuable car company on paper after Tesla and Toyota. 

Who is VinFast and what's driving this insane spike in prices? Let's do a deep dive. 

VinFast is the first car company in Vietnam with a lofty ambition to go global.  The name VinFast interestingly enough doesn't have anything to do with speed.  Instead the Vin part stands for Vietnam, while the Fast part is an acronym in Vietnamese.  F (Phong Cach) stands for Style, A (An Toan) stands for Safety, S (Sang Tao) stands for Innovation, T (Tien Phong) stands for Pioneer. 

Behind VinFast is the largest Vietnamese private Conglomerate Vingroup and the Founder and owner is Pham Nhat Vuong, the richest man in Vietnam.  VinFast's foundation is German Technology and its soul is Italian design.  VinFast has R&F and production facilities in Vietnam, yet most of its technologies used are from elsewhere.  VinFast has partnered with BMW for its engines, its design is Pininfarina, Italian based.  It also partnered with Siemens, Bosch and Magna International. 

Currently there are 4  VinFast Models VF e34, VF 8, VF 9 and VF 5.  The VF 8 is also available in the US.  VinFast is planning a factory in North Caroline US which will start operating in 2025, a year later than its expected target of 2024.  

VinFast is hoping to qualify for up to USD7, 500 tax credits when the production is in operation.  VinFast is pricing its  VF9 model at a considerable discount to Tesla Model X. VinFast's strategy is to provide premium quality products at affordable pricing, coupled with excellent customer service. 

Why did VinFast share price go up so fast in such a short pace of time?  It is certainly not because of its strong car sales.  VinFast expects to sell just 50,000 vehicles this year. 

It is likely due to VinFast 's tiny float of available shares to trade that has sparked an imbalance in the supply and demand, leading to the soaring rally. 

Founder Pham Nhat Vuong controls 99% of VinFast and he issued just 1% of the company shares to the public.  While there are 2.32 billion shares of VinFast outstanding, there is a float of just 7.2 million shares available to the public to trade.   VinFast's shares were among the most actively watched on Stocktwits, a popular website with retail investors. 

Fundamentally VinFast has reported a drop in 1st quarter revenue by 49%, with a net loss deepening to USD 598 million in its first full reporting period since it started exporting to the US.   

VinFast has a long road ahead to become profitable and to compete with Tesla and other EV companies.   VinFast share price is too Fast and Furious for a risk adverse investor like me but its intent to be a global EV player is however Fast and Serious.  Let's hope this fledging EV company will succeed in its lofty goal and become a major EV in the future.  If it does, VinFast has the potential to be a multi bagger. 

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