Why VinFast Auto Stock Raced 12% Higher Today
VinFast Auto (NASDAQ: VFS), one of the more volatile stocks in the volatile electric vehicle (EV) sector, was well in positive territory as Tuesday's trading session came to a close. The Vietnam-based company's share price increased by just under 12% on the day. The stock's upward move contrasted with the S&P 500 index's 0.2% dip.
Wedbush Securities analyst Daniel Ives initiated coverage on VinFast stock that morning. He tagged it with an outperform (i.e., buy) recommendation at a price target of $12 per share -- more than double the stock's level at the start of the trading day.
The move came after a visit by Ives and his team to the EV maker's operations in its home country. Ives feels that VinFast has the potential to ramp up production quickly in its Vietnam facility. At the moment this has capacity to make 250,000 vehicles, a similar number of electric scooters, and 3,000 buses, according to the analyst. That should expand to a total of 950,000 vehicles as soon as 2026.
Source Fool.com
