VinFast sells electric cars in the USA and the company’s stock value exceeds General Motors

Surprisingly, a new Vietnamese company dedicated to the manufacture of electric cars and that has barely sold 11,000 cars in its country in the first part of this year, appears on the New York Stock Exchange and on the first day of its stock price surpasses broadly that of General Motors and Ford.

Its market value reached $85 billion, when GM and Ford have a value of the order of $48 billion. Something that is very surprising and that clearly indicates that the electric car market is committed to new brands, and especially Asian brands that lower the prices of electric cars.

VinFast is a relatively young company, founded in 2017 and focused from the beginning on the manufacture of electric cars. In 2022 it launched its first models in Vietnam, and in 2023 it expanded to the United States, where it began to sell its cars over the Internet.

The success of VinFast is due to the fact that the company offers electric cars at competitive prices (with a starting price between $40,000 and $55,000) that places them in the mid-range of electric cars, and also offers an 8-year battery guarantee.

This momentary success of VinFast has also been fueled by the growing demand for electric cars in the United States. The US electric car market is growing rapidly, and is expected to reach 22 million vehicles by 2030. VinFast is well positioned to take advantage of this trend, as it is one of the few electric car manufacturers to offer a wide range of models at competitive prices.

VinFast’s success is a sign that the electric car industry is changing. Traditional car manufacturers are being challenged by new competitors, such as Tesla, VinFast and others. These new competitors are offering more innovative and affordable electric cars, which is fueling the growth of the electric car market.

And there is another important issue, and that is that users expect Asian companies to “help” lower the current high prices of electric cars, and taking into account the enormous technological competition between the USA and China, it is a good time for them to position in the North American market some Asian companies from countries other than China.

Time will put everyone in their place, but what does not make sense today is that a recently created company that has just begun to sell its products values it at exorbitant prices.

This reminds me of what happened with the WeWork company, which was valued at more than $20 billion, and which is now bankrupt.

When it comes to stock valuations, there are many “experts” who make huge profits by raising and lowering those valuations.

In a few years we will see what each one is really worth.