The ‘Elon Musk of Vietnam’ Just Made a $4 Billion Move To Take On Tesla, And a 1414.7% Stock Surge Means Investors Think He Has A Shot

The electric vehicle (EV) market, long dominated by Tesla Inc. (NASDAQ:TSLA), faces a potential challenger in VinFast Auto Ltd. (NASDAQ:VFS), a Vietnamese carmaker making rapid strides.

Tesla’s supremacy in the EV market has been evident through its diverse range of models, including the recent Cybertruck. In 2023, Tesla showcased its expertise by producing 1,845,985 vehicles and delivering 1,808,581, achieving a 38% year-over-year growth in EV deliveries, according to a recent investor relations press release.

Despite a stellar 2023, marked by a surge of over 100% in stock prices, Tesla has faced a recent setback in 2024. The stock price has experienced a nearly 16% decline to its current price of $209.43.

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In contrast, VinFast has emerged as a formidable contender, expanding its footprint in the United States.

To fortify its presence in the United States and drive growth, VinFast is building a $4 billion EV factory in North Carolina, slated for completion in 2025. The Factory has an expected production capacity of 150,000 vehicles per year, according to VinFast’s report.

“Today’s event marks a new milestone for VinFast, affirming our commitment to the North American market,” former VinFast’s CEO Madam Le Thi Thu Thuy. “Not only will this project create thousands of jobs and contribute to North Carolina’s economic development, but VinFast’s electric vehicles produced here will also bring additional economic benefits to consumers.”

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This significant move underscores VinFast’s dedication to establishing a strong presence in the American market.

Both companies share intriguing parallels in their leadership, boasting CEOs who rank as the wealthiest people in their respective countries. Elon Musk, the visionary behind Tesla, has a net worth of $224.9 billion. VinFast CEO Pham Nhat Vuong, who also is the founder and chairman of VinGroup, Vietnam’s largest conglomerate and the parent company of VinFast, boasts a net worth of $4.3 billion.

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In August, VinFast’s stock price surged, reaching a value 1,414.7% higher than the current price of $6.06. This surge temporarily catapulted Vuong’s net worth, which hit a peak of $44.3 billion.

Vuong recently assumed the position of CEO of VinFast, a move deemed timely by VinFast’s board as the company enters the next phase of its development.

With these strategic moves and a surge in attention, VinFast seems poised to challenge industry leader Tesla. As the competition intensifies between these two automotive giants, the EV market may witness a dynamic shift that shapes the future of electric vehicles.

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