VinFast

VinFast, a Vietnamese EV maker backed by the country's richest man Pham Nhat Vuong, merged with Black Spade Acquisition Co in August 2023. What happened next was one of the most absurd episodes in market history.

Due to an extremely small public float — only about 1% of shares were freely tradeable — VinFast's stock surged to $93 in its first days of trading. This gave the company a paper valuation of $230 billion, briefly making it the third most valuable automaker in the world, behind only Tesla and Toyota. At that valuation, VinFast was worth more than BMW, Mercedes-Benz, and Volkswagen combined.

The reality was starkly different. VinFast sold approximately 35,000 vehicles in 2023, mostly in Vietnam. Its cars received mediocre reviews from Western automotive press, with concerns about quality and safety. The company was heavily subsidized by Vingroup, Vuong's conglomerate, and burned cash rapidly on international expansion.

As the float expanded and lock-up periods expired, the stock collapsed predictably — falling 96% from its peak to around $3.82. Pham Nhat Vuong remained committed, investing billions of his personal fortune. VinFast continues to sell cars, primarily in Vietnam, but the $230 billion valuation will go down as one of the most ridiculous mispricings in financial history.