(Reuters) – VinFast’s shares more than doubled on Tuesday to the highest since Vietnamese electric vehicle maker’s blowout Wall Street debut after Reuters reported that South Korea’s Star Group Industrial plans to open factory in Vietnam.
In the latest volatile session since its backdoor listing last week, VinFast’s stock was last up 127% at $40.24, giving it a market capitalization of $95 billion. The stock traded as high as $46.98 earlier in the session.
Last Tuesday, the cash-burning company soared as it started trading on the U.S. stock market with an opening price of $22 following its tie-up with SPAC partner Black Spade Acquisition.
With 99% of the EV firm controlled by founder Pham Nhat Vuong, the tiny amount of publicly available shares has made the stock prone to volatility. It has jumped or slumped 14% or more every day over the past six sessions.
The stock was the second highest on trading website Stocktwits “Trending” list on Tuesday, suggesting it has attracted the interest of individual investors.
About $428 million worth of VinFast’s shares had been traded as of mid-day, compared to Tesla’s turnover of over $17 billion.
Reuters reported late on Monday that South Korea’s Star Group Industrial, which supplies magnets to VinFast and Korea’s Hyundai Motor, is investing $80 million in a new factory in Vietnam, with production starting in 2024.
SGI described the investment as part of “countermeasures” against possible Chinese trade restrictions.
(Reporting by Noel Randewich; editing by David Evans)