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Tesla's Price Battle and VinFast's U.S. Debut: A Thrilling Week in the EV Market

Get ready to catch up on a rollercoaster week for electric vehicles as Vietnamese automaker VinFast enters the U.S. market, Tesla continues its aggressive pricing strategy, and Mullen fights to stay listed on the Nasdaq.

Tesla logo
Tesla logo

VinFast's Explosive U.S. Stock Market Debut

VinFast, a renowned Vietnamese electric vehicle maker, marked its exciting debut on the U.S. stock exchange this past week. The company experienced an astonishing 270% surge on its first trading day, reaching a peak of $37 before a dramatic fall.

The stock started at $22 per share, putting VinFast's value at roughly $50 billion. The subsequent trading frenzy saw the market capitalization soar above $85 billion, surpassing well-known brands like Volkswagen and Ford.

However, since its peak, the stock has plummeted about 45%. Despite this decrease, VinFast still holds the title of the Vietnamese company with the largest market capitalization trading in the U.S.

Challenges and Controversies with VinFast's U.S. Transition

VinFast's popularity in Vietnam has not translated smoothly into the U.S. market. The company began U.S. deliveries earlier this year and has since faced considerable criticism.

The negative feedback centered around its electric SUV, the VF 8. Major industry outlets have expressed disappointment with the vehicle, with some even suggesting it's "unacceptable."

Despite these setbacks, VinFast announced software improvements, although it remains uncertain if these changes will sway public opinion. The stock closed the week at $15.40.

Tesla Slashes Prices Amid Chinese Sales Drop

Electric Vehicle titan, Tesla continued to wage its price war this week, with a focus on the Chinese market. The company announced lower pricing for the Model Y long-range and performance models in China and insurance subsidies for its entry-level Model 3.

Sales have seen a significant drop in China, leading to deeper discounts both domestically and abroad. Tesla's CEO Elon Musk also hinted at further price reductions in the future, potentially affecting profit margins.

Mullen Fights to Avoid Delisting with Stock Buyback

Emerging EV manufacturer Mullen launched a $25 million stock buyback program this week, indicating its efforts to comply with Nasdaq trading rules. The company aims to maintain its share price above the $1 mark, a requirement to avoid delisting.

Mullen's recent 9:1 reverse stock split barely kept the share price above the threshold but struggles to maintain it continue. CEO David Michery expressed his belief that the stock is undervalued, emphasizing the company's production and strong balance sheet. The shares closed the week at $0.64.