VinFast Buys Its Cars: Genius Move or Scam?
This page is translated from the original post "VinFast achète ses voitures : coup de génie ou escroquerie ?" in French.
- 19/09/2023 18:48
While the stock market action has collapsed since its debut in July 2023, the practices of the Vietnamese manufacturer VinFast are raising questions.
Was it too good to be true? In any case, fortunes have been made while others have been lost since the launch of VinFast‘s stock trading on the New York Stock Exchange on July 28, 2023. Speculation was in full swing, with the initial price set at $10.30 rapidly soaring to $84 by August 28, as some did not want to miss out on a new “Tesla” from Vietnam.
Alas, since that date, the trend has only been downward, and by startling proportions: Tuesday, September 19, the share was valued at $17.30. Naturally, some investors have taken a big hit…
But today, VinFast is under scrutiny by the U.S. stock market regulator for possible stock price manipulation. The reason? VinFast announced surprisingly high sales figures for a new player, with over 11,300 cars sold in the first half of 2023. However, these purchases were made by half by a company owned by VinFast, VinGroup, to feed a fleet of taxis, among other things.
This approach is by no means illegal but, once uncovered, it makes it possible to question the genuine interest of customers in the Vietnamese firm. That is why the stock value has plummeted, trust being broken. And what will be the economic viability in the long term if the money just changes hands?
From now on, any announcement of sales figures will be suspect. The same goes for major promises of expansion, such as establishing in India (expressed on September 15 to imitate Tesla) or others. VinFast is not short on ambitions and seems eager to move fast. However, beware of rushing things and risking setbacks.
READ ALSO: Vinfast VF7 & VF6: what range for Vietnamese electric SUVs?
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