The electric vehicle manufacturer from Vietnam, VinFast Auto (NASDAQ:VFS), experienced a significant drop in its stock, despite no apparent reason behind the move.
As per Barron’s report, VinFast’s share price plunged by 12%, to $8.15 in the afternoon session, while the S&P 500 and Nasdaq Composite saw modest gains of 0.3% and 0.8% respectively.
Notably, the stock’s erratic movements, devoid of any fundamental news, are not unusual. Following its merger with a Special-Purpose Acquisition Company (SPAC) on Aug. 15, VinFast’s stock price soared from roughly $10 to $93 a share just days later.
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Since the change to the “VFS” ticker symbol, the stock has shown substantial volatility, with changes of more than 10% on 20 out of 36 trading days. The average gain or loss has been about 22%.
The company, which has no analyst coverage according to FactSet, provided its full-year delivery guidance on Sept. 21. It expects to deliver between 40,000 and 50,000 EVs in 2023, excluding e-scooter sales.
Despite this, VinFast’s stock has dropped about $9 a share, or 52%, since then. With a stock price of $8.15 a share, VinFast’s market capitalization stands at approximately $19 billion, lower than Rivian Automotive‘s (NASDAQ:RIVN) market cap of about $21 billion.
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Photo by NamLong Nguyen on Shutterstock
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