What's Going On With VinFast Auto Stock?
Portfolio Pulse from Adam Eckert
Shares of Vietnamese EV maker VinFast Auto Ltd (NASDAQ:VFS) have been extremely volatile since its debut on the Nasdaq last week. The company's shares surged approximately 270% in its first day of trading before pulling back. The volatility is partly due to the fact that only 1% of the float was opened to outside investors, with the remaining 99% owned by the company's founder. The company's stock has also been trending among retail traders. Additionally, reports suggest that the company's magnet supplier, South Korea's Star Group Industrial, is investing $80 million in a new factory in Vietnam to double output, which may have contributed to the stock's resurgence.
August 22, 2023 | 3:40 pm
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VinFast Auto Ltd's shares have been extremely volatile since its Nasdaq debut, with only 1% of the float opened to outside investors. The company's magnet supplier's investment in a new factory may have contributed to the stock's resurgence.
The volatility in VinFast's shares can be attributed to the limited float available to outside investors, which has likely increased trading activity and price swings. Additionally, the news of the company's magnet supplier investing in a new factory to double output is a positive development that could potentially boost the company's production capabilities and future revenues, thereby having a positive impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100