VinFast, the Vietnamese electric vehicle (EV) manufacturer, made a splash in its debut as a publicly traded entity on the Nasdaq, a testament to the investors’ growing interest in EV start-ups backed by special-purpose acquisition companies (SPACs).

The company recently wrapped up its merger with SPAC Black Spade Acquisition, rebranding the stock symbol from “BSAQ” to “VFS” in the process.

Last Thursday, shareholders gave a green light to the merger, a decision that sent Black Spade shares soaring by 73% to $18.50 each. However, a dip to $10.45 was noted on the eve of Tuesday trading, showcasing the stock’s volatility.

On Tuesday, share prices swung between $16 and a staggering $28 around midday, while major indices like the S&P 500 and Nasdaq Composite were both down by close to 0.8% and 0.7%, respectively.

What makes VinFast’s merger with Black Spade stand out is its valuation. After the deal, VinFast’s stock is valued at a whopping $23 billion.

To put this into perspective, this valuation supersedes market giants like Rivian Automotive, Lucid Group, and Polestar Automotive. At its Thursday closing price of $18.50 per share, VinFast was inching closer to General Motors’ market cap of $46 billion.

And, with the stock hitting $28, VinFast’s market cap surpasses $64 billion, overtaking not just Rivian, Lucid, and Polestar combined but also traditional powerhouses like Ford Motor 和通用汽车。

Seasoned investors might recall the initial days of the SPAC boom. Nikola’s stock value surged post its SPAC merger, only to decline steeply later on. Building a sustainable EV business, as history shows, can be more challenging than anticipated.

However, VinFast is positioned differently. The company boasts impressive sales and manufacturing capacity, cornerstones that set them apart from other EV start-ups.

VinFast CEO Thuy Le emphasized this while speaking to Barron’s, saying, “We are all about entrepreneurial spirit, innovative, determined, always ready to challenge the status quo. That’s who we are.” And importantly, she added, “That resonates very well with the American consciousness.”

Backing these statements, VinFast reported delivering 3,800 EVs in April, and its presence in the U.S. is tangible. Americans snapped up 740 VinFast VF8 SUVs in the recent quarter.

Furthermore, with the capability to churn out 300,000 EVs annually and a new $2 billion facility underway in North Carolina, VinFast is set for expansion. The company projects its 2023 sales between $1.8 billion and $2 billion.

Now listed in the U.S., VinFast is primed for more analyst coverage and future sales and earnings projections. Given its current market cap of around $50 billion, it not only ranks among the most valuable EV enterprises globally but also among the elite automakers.

Photos courtesy of VinFast.