A roller-coaster analogy is often used with high volatility stocks, but skiing is perhaps a better one for VinFast Auto (VFS:NASDAQ). To say Vietnam’s supposed answer to Tesla (TSLA:NASDAQ) was a debut hit would be an understatement - the stock surged roughly 270% on its $22 IPO (initial public offering) price in two weeks for a peak market value of more than $190 billion (28 August).
In the last month alone the stock has halved, falling below the IPO price, after VinFast unveiled a $623 million third quarter 2023 net loss, about 34% up on Q3 2022, despite soaring deliveries of its electric cars, buses and scooters (10,027 cars/buses, 28,220 scooters).

VinFast’s erratic run should not be so surprising considering approximately 99% of the shares are under the control of Pham Nhat Vuon, the company’s chairman and founder. With so few available for outside investors, when the relatively rare free float shares do change hands, it can have a dramatic impact on the share price, as we have seen.

Growing speculation that most of VinFast’s vehicle deliveries stayed in the domestic market, with many of the cars snapped up by the founder’s own taxi firm fleet, as rumours have it, and that Pham Nhat Vuon also wants to sell more of his stake, will not ease the intense uncertainly surrounding the company and its stock.

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