Massive Loss: Vietnam Tycoon’s Fortune Drops $18 Billion Due to Decline in EV Maker’s Shares
VinFast Auto Ltd. has returned after a meteoric rise on its first day of trading, wiping out a portion of its billionaire founder’s fortune. The Vietnamese electric vehicle manufacturer’s shares closed at $15.40 on
Friday, capping a volatile week that saw the stock surge 255% to $37.06 on Tuesday, its first day of trading on the Nasdaq following a merger with a blank-check company. There were three straight days of decline after that.
According to the Bloomberg Billionaires Index, Chairman and Founder Pham Nhat Vuong’s net worth dropped roughly 52% to $21.2 billion over the same three-day period.
Financial Resilience Amid Fluctuations: Vuong’s Strategic Advantage Beyond Immediate Loss
Regardless, Vuong is not in pain. Because Bloomberg’s index did not account for his VinFast stake until the company completed its SPAC merger this week, he remains considerably wealthier than before the listing.
On paper, he gained nearly $40 billion on the first day of trading, one of the index’s largest increases in wealth ever recorded.
Large share-price fluctuations were anticipated. Vuong controls 99.9% of VinFast’s shares, primarily via his business conglomerate, Vingroup JSC. This leaves a small portion for other investors to trade, so even relatively small transactions can significantly affect the price.
VinFast’s market capitalization peaked on Tuesday at $85 billion, when it was briefly ahead of General Motors Co. despite being on pace to make fewer sales this year than GM does in a week.
It ended the week at approximately $36 billion, remaining ahead of EV competitors such as Rivian Automotive, Nio, and Lucid Group.
The story of VinFast is a reminder that in the ever-changing realm of innovation, the journey itself can be as remarkable as the destination.
Source: Yahoo! Finance
