Vietnamese EV maker VinFast has continued to peak investors’ interest since going public. The company’s shares, traded at NASDAQ, have surged 130% amid reports about a new plant being opened in Vietnam by VinFast supplier Star Group Industrial.
VinFast sources its magnets from Star Group Industrial, which is based in South Korea and also supplies Hyundai Motors, among other electric car makers. The South Korean company is reportedly looking to make an $80 million investment in a new factory in Vietnam. The plant is expected to start production next year.
The expectation is that the new plant will have a positive effect on VinFast and allow them to avoid supply chain problems. It could also make their cars more affordable, boosting the demand.
VinFast made its NASDAQ debut last week through a tie-up with Black Spade Acquisition Co. The stock debuted at $15.40 per share but has since had a steady rise. Its biggest jump came on Tuesday when it reached $41.52 compared to Monday’s closing price of $17.58.
The experts are warning that VinFast stock is far from a sure bet and expect periods of volatility. This is because only 1.3 million are available for trading while the rest is being held by founder Pham Nhat Vuong.