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VFS stock is down more than 80% in just two weeks – Crypto News

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2 years ago

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  • VFS stock has traded down more than 80% since its August 28 high.
  • VinFast stock gained more than 400% following its listing. 
  • The EV company hails from Vietnam and has produced more than 19,000 vehicles to date. 
  • At its height, the company was worth more than the market cap of Goldman Sachs.

 

VinFast Auto (VFS), the Vietnamese upstart EV brand that began trading on the US stock market less than month ago, is already seeing its share price succumb to reality. After blowing up in its first two weeks, VFS stock has tanked by more than 80% from its all-time high on August 28.

Dropping another 26.6% on Thursday, Vinfast stock traded below the $18 support level that appeared to be a buffer during August. VFS shares opened as much as 5% higher on Friday but soon began trending lower. 

VinFast stock news

Vinfast stock is now below the final pre-listing price of $21.89 before special-purpose acquisition company (SPAC) Black Spade Acquisition Co. took the company public in mid-August. VFS stock traded as high as $93 on August 28 and was worth more than most established car companies and even, momentarily, more than the venerable Goldman Sachs (GS).

At the end of June 30, based on its filings, the company had produced more than 19,000 vehicles in the six years since being founded. Excitement stems from the fact that at that time it already had another 26,000 in reservations waiting to be delivered.

VinFast produces electric SUVs, electric scooters and even electric buses at its primary factory in Hai Phong, where it boasts a capacity of 300,000 vehicles a year.

VinFast CEO Le Thi Thu Thuy has already broken ground in North Carolina on a new automotive plant to serve the North American market. The company got a $1.2 billion package to locate its factory in North Carolina’s Chatham County and aims to produce up to 150,000 vehicles annually there. 

Unfortunately, VinFast has been dogged by poor reviews of its vehicles so far. One reviewer at MotorTend said the vehicle he drove provided a bumpy ride and that the windshield wipers emit loud and unpleasant noises. 

Car and Driver wrote: “‘What would this car have to cost to convince would-be buyers to take a chance on a complete unknown with immediately obvious flaws?’ We’re not sure what the answer to that is, other than a lot less than $55,190, which was the number attached to our test car.”

VinFast stock forecast

VinFast needs to hold onto $18 as a first guess. There isn’t a lot of data to go on, and so far VFS price action has been rather erratic. 

The 4-hour chart below demonstrates that $18 is where the share price opened on August 15, and then this price level was treated as both support and resistance between August 18 and 22. 

Bulls looking for a turnaround will shoot for the $40 to $47 level where VFS stock saw both resistance on the way up and decent volume on the stock’s climb down from its highs. 

VFS daily chart

 

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