August 17, 2023: On Tuesday, VinFast’s new U.S. shares opened at $22 and were up about 30% before afternoon trading following the completion of its coalition with the U.S.-listed special purpose acquisition company Black Spade Acquisition.
Black Spade Acquisition’s shares closed at $10.45 on Monday.
SPACs are shell firm that increase capital in an IPO and use the cash to connect with a personal company to take it public, usually within two years.
According to a June filing with the U.S. Securities and Exchange Commission, the deal with Black Spade valued VinFast at approximately $23 billion.
“It’s a big milestone for us to be listed in the U.S. The listing is going to open access to the capital needs for us in the future,” VinFast CEO Lê Thị Thu Thủy, who uses the name Madame Thủy in English, said on Tuesday morning.
VinFast, the automobile arm of Vietnamese conglomerate Vingroup, was founded in 2017. So far, it has imported nearly 2,100 EVs to the U.S. from Vietnam, bringing nearly 800 more to Canada.
The company completed its first U.S. deliveries in March but still has a long way to go to compete with giants like Tesla and the Detroit automakers.
On whether VinFast is under pressure to cut prices in general, following a series of price reductions by Tesla and other EV rivals earlier this year, Le said the group’s strategy is “offering premium quality products at affordable pricing with excellent after-sales service.”
“We always price our products quite competitively compared to other similar products. But we enclose more features and technology when you look deeply into our creations. So I think consumers started recognizing the values we bring with our products,” said Lê.
“We try to stay competitive in every market that we are in in terms of profitability. It will come jointly with the volume. For now, we will stay true to our system.”
VinFast’s 5-seater VF 8 costs $46,000, while the essential Tesla 5-seater Model Y is priced at $47,740.
Tesla passenger vehicles are suitable for a $7,500 federal tax credit in the U.S., while VinFast cars must be built in the U.S.