The unbelievable run for shares of Vietnamese EV maker VinFast Auto has made it the second-most valuable car stock on the planet, behind only Tesla. The start-up might want to consider using its high stock price to its advantage.
One thing a high stock price can do is provide the opportunity to raise capital. VinFast doesn’t produce free cash flow yet and will need more money from external sources to build its business. The company didn’t immediately respond to a request for comment about its plans for raising cash. That 17 million figure is one reason shares are up so much. Less than $1 billion worth of stock is actively bought and sold. That is small enough to be influenced by traders.
Short sellers are one kind of trader. They borrow stock they don’t own and sell it, betting on price declines. Early short sellers haven’t made out well. S3 Partners managing partner Ihor Dusaniwsky told Barron’s there were roughly 1.2 million shares sold short just after the SPAC merger closed. Those short sellers are down in the range of $20 million. That number, however, is only an abstraction. The traders could have bought and sold stock many times since then.
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Source: CNN - 🏆 4. / 95 Read more »