It appears that over half of Vietnamese electric vehicle startup VinFast’s sales during the first half of 2023 were to a taxi firm that’s owned by VinGroup, the automaker’s parent company. The sales were revealed in filings with the United States Securities and Exchange Commission (SEC).
VinFast reported 11,300 vehicle sales in the first half of 2023. From this number, 7,100 were sold to Green and Smart Mobility (GSM), which is a Vietnamese taxi company that, like VinFast, is controlled by parent company VinGroup.
VinFast’s SEC filing also noted that a further portion of its revenue came from the sales of goods and battery-related spare parts to VinES and sales of e-buses to VinBus. The businesses are also owned by VinGroup, as noted in a Financial Times report.
The filings paint a pretty interesting picture of VinFast, whose entry into the US stock market was marked by volatility. The surges in VinFast stock have been so notable that the company briefly became the world’s third-most highly valued automaker. Prices have fluctuated from as high as $93 to as low as $17.24 per share earlier this week.
Part of the reason behind the volatility in VinFast stock is the fact that there are only a few shares being traded in the open market. Out of the 2.3 billion outstanding VinFast shares, 1.2 billion are owned by Pham Nhat Vuong, the founder of the company. Another 1.1 billion shares are owned by Vietnam Investment Group and Asian Star, which are also owned by Vuong.
With this in mind, Vuong essentially holds 99.7% of VinFast stock, making the company’s shares prone to wild swings in value. VinFast seems to be addressing this trend, at least, with the SEC filing being made to allow another 11 million shares to be sold from existing stockholders. The additional shares should help with the volatility of VinFast shares.
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