VinFast’s Unusual Sales Trend: Over Half of 2023 Sales to VinGroup-Owned Taxi Firm

It’s an intriguing turn of events in the electric vehicle landscape as we delve into the first half of 2023. Vietnamese electric vehicle startup VinFast, a rising star in the industry, has unveiled a rather surprising trend in its sales. According to filings with the United States Securities and Exchange Commission (SEC), over half of VinFast’s sales during this period found their way to a rather unique customer – a taxi firm owned by none other than VinFast’s parent company, VinGroup.

VinFast, known for its ambitious foray into the electric vehicle market, reported a commendable 11,300 vehicle sales during the first half of 2023. However, what truly stands out is that a substantial chunk of this figure, precisely 7,100 units, were acquired by Green and Smart Mobility (GSM), a Vietnamese taxi company. Interestingly, like VinFast, GSM also operates under the umbrella of the conglomerate VinGroup.

But that’s not the end of the story. VinFast’s SEC filing doesn’t stop at this revelation. It also sheds light on other revenue streams, notably from the sale of goods and battery-related spare parts to VinES and the distribution of e-buses to VinBus. These companies, too, fall under the vast VinGroup umbrella, as highlighted in a Financial Times report.

The scenario painted by these filings is nothing short of fascinating, particularly in the context of VinFast’s recent entry into the US stock market. The company’s stock has witnessed remarkable volatility, with price fluctuations ranging from as high as $93 to as low as $17.24 per share in a single week.

A key factor contributing to this rollercoaster ride in VinFast’s stock price is the relatively limited number of shares available for trading in the open market. Out of the 2.3 billion outstanding VinFast shares, a staggering 1.2 billion belong to Pham Nhat Vuong, the company’s founder. An additional 1.1 billion shares are held by Vietnam Investment Group and Asian Star, both of which are also owned by Vuong. This concentration means that Vuong effectively controls a whopping 99.7% of VinFast’s stock, rendering it susceptible to rapid and unpredictable value swings.

VinFast appears to be taking steps to address this issue, at least to some extent. The recent SEC filing signals an intention to release another 11 million shares from existing stockholders. This move is expected to inject a degree of stability into VinFast’s shares, potentially mitigating the extreme price fluctuations witnessed in recent times.

As VinFast continues to navigate the global electric vehicle market, it remains a captivating entity to watch, not only for its innovative EV offerings but also for the intriguing dynamics of its ownership structure and stock market presence.