Vietnam's electric car maker Vinfast's stock market price has been higher than leading American carmakers Ford and General Motors (GM) on the first day of trading.
The company has yet to turn a profit, but its share price has seen highs since its New York listing. The price of a share closed at more than 37 US dollars.
Based on the first day's performance, Winfast's stock market valuation has been pegged at $85 billion, much higher than Ford's $48 billion and General Motors $46 billion.
This comes at a time when major automakers are fighting for their share of profits in the booming electric vehicle market.
The listing on the stock market has boosted Winfast's chairman and founder Pham Nhat Wong fortune by about $39 billion. He is already the richest man in Vietnam.
Pham Nhat Wong owns 99% of the company and manages it through Win Group JSC.
Thus it limits the number of shares available to other investors which can lead to large price swings.
Trading in Winfast shares was relatively light on Tuesday, with about $185 million worth of shares being bought and sold.
"Investors are confident that the future is electric (vehicles) and a low-cost East Asian country as a competitor to the US," says Bill Russo, founder and CEO of Shanghai-based AutoMobility. but will arise.'
Vietnam instead of China
However, both companies have lost more than 90 percent of their stock market value since the merger.
"Winfast's case may be different because it is primarily backed by the Win Group, which gives it access to funding from companies with a proven track record of growth," Mr Russo said.
"Most EV startups fail because they run out of profitable core and external funding and run out of capital faster than they generate cash," he said.
But sophistication also faces stiff competition as major players vie for market dominance.
Veteran investor market leaders like Elon Musk's Tesla and Warren Buffett-backed BYD are cutting prices to boost sales.
Winfast delivered 11,300 electric vehicles in the first half of this year, according to a company filing. In comparison, Tesla delivered more than 889,000 vehicles in the same period.
Tesla will be the clear leader when it comes to EVs, but there will be many other winners," said Dan Ives of Wedbush Securities.
'Winfast has laid a solid foundation for EV success.'
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