$10 doesn’t buy much these days, but it will get you 3 shares of Vinfast with some leftover change

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$10 doesn't buy much these days, but it will get you 3 shares of Vinfast with some leftover change

Is considering How bad was our first experience with the VinFast VF8?, it seems like VinFast going public wasn’t the best idea. Again, no one at Jalopnik is an investing expert, so maybe someone smarter has better advice that we can’t understand. From the beginning, it seemed like we couldn’t be more wrong, with a stock price of up to 82.35 USD per share. Today, VinFast shares are not even trading at $3 a share.

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At its peak, the new electric car company was valued at more than $85 billion, making it the fourth most valuable automaker in the world, behind only Tesla, Toyota and BYD. Except, unlike those three companies, VinFast hardly sell any cars to actual customers. VinFast founder Pham Nhat Vuong also retains control of more than 99% of VinFast’s shares, leaving only 0.3% of the total shares for others to trade.

So it’s not like there aren’t any signs that VinFast is overvalued. Some investors may know that getting in and are betting that they can make quick money by getting out before the market crashes. And if they get lucky and sell at the peak on August 28, they probably will. The next day, the stock went into free fall, falling to $46.25. By September 7, it had dropped to $17.99 and only continued to fall. A VinFast share hasn’t been worth more than $10 since late September, and despite a slight recovery, today it hit a record low of $2.57.

As you can imagine, some people who thought they were making a legitimate investment were upset by this unpredictable development. In the first day of this month, two law firms announced a class action lawsuit accused VinFast of “misrepresenting and/or failing to disclose that: (i) VinFast lacked capital to implement its proposed growth strategy; (ii) VinFast will not be able to meet its 2023 delivery target; and (iii) accordingly, VinFast overstated the strength of its business model and its operational capabilities as well as its post-merger business and/or financial prospects.”

Talking to Charlotte News & ObserverA VinFast spokesperson called the claims “baseless” and said: “VinFast has adhered to the highest ethical standards and has always complied with all laws and regulations in the markets in which it operates. . We will not comment further on this matter.”