Unprofitable Vietnamese electric-vehicle maker VinFast Auto Pte is now worth more than the likes of Goldman Sachs Group and Boeing.
VinFast shares closed up 20 per cent at $US82.35 Monday, marking a blistering 688 per cent since its market debut August 15. It is currently worth about $US190 billion , compared to valuations of $US111 billion for Goldman and $US137 billion for Boeing. That leaves it bigger than half of the companies in the Dow Jones Industrial Average — and about 10 times the size of Walgreens Boots Alliance.
VinFast’s torrid run comes as the broader US equity market has cooled, suggesting animal spirits haven’t been entirely quelled. The company has captured the attention of retail traders targeting EV makers, while its small number of shares outstanding also helps to amplify moves. Options on the stock also began trading Monday, giving traders the opportunity to make leveraged bets on the rally.
This advance “shows that there’s still plenty of froth in the marketplace”, said Matthew Maley, chief market strategist at Miller Tabak + Co.P 500 Index’s “only” 4 per cent decline from its summer highs has not incited a lot of fear among investors. “It will take something more like a full-blown correction of 10 per cent or so to push some real fear back into the marketplace.”