The rush to get in on the ground floor of the newest electric vehicle stock VinFast (NASDAQ:VFS) continues. It’s continuing so hard, in fact, that VinFast made another huge jump in today’s trading. Right now, it’s up almost another 43% in Friday afternoon’s trading, and where exactly the top of this stock is, no one’s quite sure.
VinFast is now in its tenth day as a publicly traded company, and it’s officially worth more (in terms of market cap) than businesses that have been around for over a century. In the last five days alone, VinFast shares have more than tripled, up 248% so far and showing little sign of stopping. In fact, with today’s trading, VinFast is now officially larger by market cap than IBM (NYSE:IBM), weighing in at a whopping $132 billion.
Analysts, meanwhile, are baffled. One noted that VinFast was currently trading at “irrational levels.” Perhaps worse, that same analyst referred to VinFast as a stock that “…should be avoided due to uncertain production schedules, low trading volume, and unsustainable valuation.” That particular analyst wasn’t the first to sound an alarm; just yesterday, when VinFast had its latest surge, we found Jim Chanos calling the valuation “insane” and Bill Maurer making it clear there was no justification for this value. It’s worth keeping in mind that the electric vehicle market is packed with competitors right now, and what’s worse, they’re vying for a shrinking market. Already, some car dealers are turning away electric vehicle inventory due to a lack of sales.
A look at the last five trading days for VinFast stock tells us an all-too-familiar story. The stock plateaus, climbs, plateaus again, climbs again, and carries on largely in this same fashion for days. There’s no real end in sight, but we know it has to come eventually.
