Electric vehicle manufacturer VinFast (NASDAQ:VFS) has not been around very long, but it’s already making quite a splash with investors. It’s already drawn such attention, in fact, that it closed up over 109% in today’s trading. And all on a premise that it hasn’t really proven yet.
VinFast shares only started trading a week ago, back on August 15. Yet, in that time, it’s managed to inflate its market cap to around $91 billion. By way of comparison, Tesla (NASDAQ:TSLA) has a market cap of over $680 billion, but Rivian (NASDAQ:RIVN) has a market cap of just $19 billion. That massive discrepancy between investment pattern and track record has left some crying foul already, calling the market cap “unsustainable,” particularly as the company is “not yet profitable.”
One of the biggest causes for such remarkable volatility appears to be a matter of supply and demand. There weren’t very many shares of VinFast released, which means finding them is a matter of fighting scarcity. Throw in a rising interest in the stock from individual retail investors—as demonstrated by VinFast stock holding the second position on StockTwits’ “Trending” section—and it becomes clear: people want in as close to the ground floor as they can get.
A look at the past five trading days for VFS stock highlights the level of volatility it has experienced. Indeed, investors are only up 27.72% during this timeframe despite seeing the share price more than double today.
