VinFast Stock Slumps After Soaring Debut

August 17, 2023: Shares of Vietnamese electric vehicle maker VinFast (VFS) slumped sharply in early trading on Wednesday after soaring by 255% in their debut on Tuesday’s Nasdaq Global Select Market.

The stock opened at $12.06 per share on Wednesday, down from its closing price of $37.06 on Tuesday. By midday, the stock had fallen to $9.50 per share.

The sell-off is likely due to a combination of factors, including profit-taking after the stock’s strong debut, concerns about the company’s long-term prospects, and the broader sell-off in technology stocks.

VinFast is a relatively new company, and it has yet to prove that it can be profitable. The company faces stiff competition from established electric vehicle makers like Tesla and General Motors.

The sell-off in VinFast’s stock is a reminder that the stock market is volatile and that investors should be careful when buying shares of new and unproven companies.

Here are some takeaways for investors:

• Research before investing in any stock, especially a new or unproven company.
• Be prepared for volatility in the stock market.
• Only invest what you can afford to lose.

Here are some actional steps that investors can take:

• Read the company’s financial statements and other SEC filings.
• Talk to other investors who have experience with the company.
• Set a stop-loss order to limit your losses.