From Nasdaq: 2024-05-17 18:23:53

Shares of VinFast Auto (NASDAQ: VFS) soared over 60% this week, driven by early demand for its affordable electric SUV. Despite being down 95% from all-time highs after its IPO, shares rallied on news of the VF 3, a $10,000 EV. Nearly 30,000 pre-orders were made in just 66 hours.

VinFast Auto aims to make EVs accessible to all with its affordable vehicles. The VF 3, priced at $10,000, has already garnered significant interest with 30,000 pre-orders. However, the company faces challenges with profitability, having lost $2.4 billion on $1.2 billion in revenue in 2023. Competing in a crowded EV market is tough.

Investors should approach VinFast Auto with caution, considering its financial challenges and intense competition in the EV sector. While its momentum is undeniable, profitability remains uncertain. The Motley Fool’s Stock Advisor team did not list VinFast among its top choices, highlighting the risks associated with this stock.

Before investing in VinFast Auto, investors should consider the track record of the company and the competitive landscape of the EV market. The Motley Fool’s Stock Advisor service offers insights into potential investments, with past picks yielding significant returns. It’s essential to weigh the risks and rewards before jumping into this volatile market.



Read more at Nasdaq: Why VinFast Auto Stock Soared Higher This Week