On its first day of trading, VinFast's stock market valuation surpassed Ford and General Motors (GM). VinFast is a Vietnamese electric vehicle (EV) manufacturer.
In its Nasdaq début, the company's shares, which have yet to generate a profit, increased by 255% according to sources.
This resulted in a stock market valuation of $85bn (£67bn) for VinFast, significantly higher than Ford's $48bn and GM's $46bn.
Both established and up-and-coming players in the automotive sector are vying for a piece of the rapidly growing electric vehicle market.
Pham Nhat Vuong, chairman of VinFast and founder of the company, was already the richest person in Vietnam before the offering. However, the listing added nearly $39 billion to his fortune.
Regulatory documents demonstrate that he has control over the majority of the company's outstanding shares, most of which are held by Vingroup JSC, which is the largest conglomerate in Vietnam.
This results in a reduction in the number of shares that are available for trading, which can cause substantial swings in the market price.
Tuesday was a somewhat slow day for trading at VinFast, with around $185 million worth of shares being transacted between buyers and sellers.
Bill Russo, founder and CEO of Automobility in Shanghai, stated that investors continue to believe that electric vehicles are the future and that a low-cost East Asian nation will arise as a competitor to the United States.
The markets believe Vietnam, not China, will be that nation due to geopolitical factors.
Instead of conducting a traditional share sale, VinFast went public through the use of a shell company, sometimes known as a special purpose acquisition company (Spac).
Start-up companies frequently make use of spacs in order to hasten the normally drawn-out and expensive process of going public. To put it more succinctly, it involves combining a company that is not publicly traded with another that is.
During the course of the previous three years, a number of electric vehicle manufacturers have gone public utilizing Spacs.
These manufacturers include Lordstown Motors and Faraday Future. Both businesses have suffered a decline in market value of more than 90 percent as a direct result of their mergers.
Mr. Russo stated that VinFast may be unique because they are primarily backed by Vingroup, which provides them with access to funding from a company with a track record of growth.
He explained that a significant number of EV startups fail due to the absence of a profitable business model, and that their external funding dries up because they consume capital much quicker than they generate cash. However, VinFast faces fierce competition from market leaders contending for dominance.
Market leaders, including Elon Musk's Tesla and Warren Buffett-backed BYD, have been slashing prices in an effort to increase sales.
According to a company presentation, VinFast delivered 11,300 EVs during the first half of the year. In comparison, Tesla delivered over 889 thousand vehicles during the same time period.
"Tesla will continue to be the clear leader in EVs, but there will be many other winners," said Wedbush Securities' Dan Ives. VinFast has established a solid basis for EV success.