VinFast (NASDAQ:VFS), the Vietnamese electric vehicle manufacturer, witnessed a decline of up to 7.7% in its stock on Tuesday after the company revealed that insiders will sell some of their shares moving forward. Few VinFast shares have been left available for trading following heavy withdrawals by investors in the company's SPAC deal, according to reports by the Wall Street journal.
Just last month, VinFast experienced a dramatic decline in its market capitalization, plummeting by over $140 billion in less than two weeks, taking the stock below its initial listing price of $22 when it made its debut on the Nasdaq exchange just seven weeks ago.
The EV maker is a majority-owned affiliate of Vingroup, a prominent Vietnamese conglomerate and one of Vietnam's largest publicly traded firms. The vast majority of VinFast shares, approximately 99%, are under the control of Vingroup's chairman and VinFast's founder, Pham Nhat Vuon, leaving only a small fraction available for outside investors.
The small number of shares available for trading also means more volatility in the stock’s performance.
VinFast last month reported a quarterly loss amounting to half a billion dollars while revealing that it had delivered over 9,000 electric vehicles globally, generating approximately $315 million in sales for that quarter.
The company has been importing its vehicles into the U.S. and is and is actively expanding its presence in North America.
In July, the company broke ground on an electric vehicle manufacturing facility located in Chatham County, North Carolina. VinFast claims the new facility will eventually be capable of producing up to 150,000 vehicles annually.
Shares of VFS are down 5.2% in mid-day trading Tuesday.