Emerging Tesla Challenger To Receive Another $1B From Vietnamese Billionaire: ‘I Will Not Give Up On VinFast’ – VinFast Auto (NASDAQ:VFS)

Vietnamese billionaire Pham Nhat Vuong has announced plans to inject an additional $1 billion from his personal fortune into Nasdaq-listed electric vehicle (EV) makers VinFast Auto Ltd NASDAQ: VFS).

What has happened: In the meeting of shareholders of Vingroup.

“I plan to give VinFast $1 billion from my own pocket,” Vuong said.

He and Vingroup have already pumped $11.4 billion into the company by the end of last year.

Vuong, who also serves as VinFast’s CEO, has a 97% stake in the company through direct ownership and companies under his control.

Despite the company’s share price falling from $10 to $2.50 since its listing in August, Vuong remains optimistic about the future of the EV market.

He said, “The electric car market will continue to grow, surpassing combustion engine cars. I will not stop using VinFast.”

VinFast’s sales challenges are well documented, with the company failing to meet its sales targets last year and reporting huge losses. The company’s financial problems have been exacerbated by its dependence on sales to companies associated with the decline of the global EV market.

Despite these challenges, Vuong remains committed to VinFast, with more than 70% of the 35,000 vehicles sold last year going to the electric taxi company, GSM, which he owns. He is also considering listing GSM on the global market if the situation allows.

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Why It Matters: Vuong’s decision to invest an additional $1 billion in VinFast comes at a time when the company is facing significant sales challenges. The company’s financial woes have been exacerbated by its dependence on sales to companies associated with the decline of the global EV market.

The company has accumulated losses of $5.7 billion over the past three years, leading to a 38% drop in Vingroup’s share price since VinFast’s US listing in August.

Despite these challenges, Vuong’s commitment to VinFast has not wavered, and his decision to invest an additional $1 billion reflects his confidence in the company’s long-term prospects.

In August, VinFast’s market price increased by 20% with the increase in shares, gaining the third place after Tesla and Toyota. The company’s shares rose 20% in the US market, pushing its market capitalization to $191.2 billion. Despite its underperforming US operations, EV’s surge led to buying concerns among private investors.

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