Shares of VinFast Auto (NASDAQ:VFS) are down more than 13% in early trading Thursday morning. Leading towards what looks like a second straight session of losses after the Vietnamese automaker’s meteoric rise in its Nasdaq debut this week.
Shares of the company fell 19% Wednesday as the company faces an ambitious annual goal set by its founder Pham Nhat Vuong - to sell 50,000 EVs, more than twice the sales notched up so far this year.
VinFast had hit an eye-popping valuation of $85 billion on its first day of trading on Tuesday, making it Asia Pacific's biggest M&A deal this year. Excitement over the new company prompted shares to trade high enough to eclipse long time automotive companies like Ford Motor Company (NYSE:F) and General Motors (NYSE:GM).
Stock prices of other electric vehicle companies like Lucid Group Inc (NASDAQ:LCID) and Fisker Inc (NYSE:FSR), which went public through special-purpose acquisition company (SPAC) mergers, have also experienced declines since their initial trading.
As VinFast's founder holds a staggering 99% ownership of the company, the stock's limited availability for trading could expose it to additional fluctuations in value. Simultaneously, the company's high valuation might face potential challenges as it pursues further capital-raising endeavors in the coming months.
Shares of VFS are down 13.65% in mid-day trading Thursday.