Why Is VinFast Auto Stock Plunging After a Massive August Rally?
After a dazzling debut in August, VinFast Auto (NASDAQ: VFS) stock is on an eight-day losing streak as of this writing. Shares of the electric vehicle (EV) manufacturer surged 184.7% in August, according to data provided by S&P Global Market Intelligence. That's after accounting for the stock's 58% fall in the last three days of August. It has dived further this month and is now almost 78% off highs.
VinFast Auto stock went public via a special purpose acquisition company (SPAC) on the stock market on August 15. Within days of its debut, the stock's price shot up from $10 apiece to a record high of $93 per share. It couldn't get any crazier, with VinFast Auto stock momentarily becoming more valuable than Ford and General Motors combined when its market capitalization crossed $230 billion at its peak.
For a loss-making company that generated $634 million in revenue in 2022, that valuation was unsustainable, and it's not surprising to see VinFast Auto stock falling back to the ground.
Source Fool.com
