VinFast Continues to Plummet as Insiders Recommend Selling Shares

VinFast, the Vietnamese electric vehicle manufacturer, saw its stock decline by as much as 7.7% on Tuesday after announcing that insiders would be selling some of their shares in the near future. According to reports, the trading options for VinFast shares have been severely limited due to significant withdrawals from investors connected to the company’s SPAC deal.

Last month, VinFast faced a staggering drop in its market capitalization, which fell by over $140 billion in less than two weeks. This decline pushed the stock below its initial listing price of $22, just seven weeks after its debut on the Nasdaq exchange.

VinFast is primarily owned by Vingroup, a leading Vietnamese conglomerate and one of the country’s largest publicly traded companies. Approximately 99% of VinFast shares are controlled by Vingroup’s chairman and VinFast founder, Pham Nhat Vuon, which means only a tiny portion is available for external investors.

The limited number of tradable shares contributes to increased volatility in the stock’s performance.

Last month, VinFast reported a quarterly loss of around $500 million while disclosing that it had delivered over 9,000 electric vehicles worldwide, generating approximately $315 million in sales during that quarter.

The company has been working to establish its presence in North America while importing its vehicles into the U.S. Earlier this year, VinFast broke ground on a new electric vehicle manufacturing facility in Chatham County, North Carolina, which is expected to eventually produce up to 150,000 vehicles annually.

As of mid-day trading on Tuesday, shares of VinFast were down 5.2%.