VinFast (NASDAQ:VFS) stock has begun trading on the Nasdaq.
The Vietnam-centric electric automaker successfully merged today with a special purpose acquisition company (SPAC) called Black Square Acquisition. It traded on the NYSE as BSAQ.
When writing about Black Square last week, I called VinFast well-capitalized. The market capitalization is estimated at $23 billion. VFS stock was trading at $16.33 in the pre-market.
The Seven Things
Here are some things to know about the Nasdaq’s newest opportunity.
First, it’s not just Vietnamese. A Hong Kong investment banker and casino owner, an India-based design house, and an Austrian car manufacturer are all involved. So is German BMW (OTCMKTS:BMWYY). And VinFast is headquartered in Singapore.
Second, you can trade more than VFS. Warrants are available to trade under the symbol VFSWW.
Third, VinFast’s CEO is a woman. Le Thi Thu Thuy is known as Madame Thuy. She has a degree from Harvard and worked at Lehman Brothers before joining VinFast’s parent company, VinGroup.
Fourth, VinGroup is the largest conglomerate in Vietnam, with interests in real estate, retailing and technology.
Fifth, this is a turnaround story. VinFast got into the car business in 2018. But it lost $1 billion in 2021, mainly trying to make gas-powered cars.
Sixth, VinFast is aiming straight at Tesla (NASDAQ:TSLA) with help from the American taxpayer. The company’s cars will be priced in the mid-40s and are eligible for tax credits under the Inflation Reduction Act.
Finally, VinFast has already broken ground for a factory southwest of Raleigh in North Carolina. It says the plant will be able to make 150,000 cars per year.
VFS Stock: What Happens Next?
The EV industry is crowded, but there’s ample room for a company that can deliver affordable sedans like those of BYD (OTCMKTS:BYDDF) in China. VinFast aims to fill that niche.
As of this writing, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
