Since it began trading on the Nasdaq last week, VinFast (NASDAQ:VFS) stock has been making waves on Wall Street. The Vietnamese electric vehicle (EV) producer has single-handedly reminded investors not to count out special purpose acquisition companies (SPACs). After going public via a blank-check merger, the new VFS stock rocketed to a market capitalization higher than the market caps of much larger competitors like Ford (NYSE:F) and General Motors (NYSE:GM).
Part of today’s growth in VFS stock can be attributed to the fact that VinFast is eyeing an expansion into U.S. markets. Recently, the company launched a new ad campaign called “Changing Lanes,” in which it showcases a new EV model and its extensive features.
Does this mean that VinFast poses a threat to EV producers across the U.S. and elsewhere? Let’s take a closer look at the company and its plans for conquering international markets.
What’s Happening With VFS Stock?
It has been an outstanding day for VinFast, with VFS stock closing up by 108% on multiple positive catalysts. The company’s new ad campaign has likely made investors highly optimistic about its plans to further its global reach. But today also brought another positive update for the firm.
Specifically, one of the firm’s chief magnet suppliers, Star Group Industrial, has announced plans to set up a factory in Vietnam. With more Asia-based firms looking to distance themselves from China due to rising geopolitical tensions, this development could help VinFast streamline production as EV demand increases.
EV demand also isn’t slowing down in the U.S., with VinFast emerging as a cool new brand offering trendy vehicles. The latest “Changing Lanes” ad makes this quite clear. Released to U.S. buyers, the ad features actor and auto enthusiast Joey Lawrence. The video showcases VinFast’s VF 8, a crossover EV with many luxury features like a panoramic sunroof and rear ventilated seats. Additionally, the ad highlights the vehicle’s 10-year battery warranty under which a driver can still be covered after driving 1 million miles.
While the video doesn’t specify this, the ad is clearly aimed at U.S. buyers. VinFast CEO Madame Thuy Le issued the following statement today:
“The VinFast team has worked tirelessly to bring new and unique EVs to the U.S. market […] Our new marketing campaign, ‘Changing Lanes,’ highlights the VF 8’s eye-catching design, unparalleled warranty, and long list of premium, smart features that come standard […] VinFast aims to offer a new kind of EVs, designed for drivers seeking something different and looking to chart their own path […] We are pleased to debut ‘Changing Lanes’ in the U.S., and invite drivers in California to visit a showroom and experience the VF 8 for themselves.”
Why It Matters
Interestingly, while Lawrence is a known auto enthusiast, he hasn’t always been the biggest fan of other EVs. Earlier this month, he appeared on a podcast and criticized the quality of Tesla (NASDAQ:TSLA) vehicles, saying, “I appreciate what they were trying to accomplish […] I am not a fan.” So, the fact he appeared in the ad for VinFast suggests he may have found an EV he can actually get behind.
For investors, this should be a good sign. VinFast is focused on gaining a presence in U.S. markets. If it can successfully do so, VFS stock will continue to grow.
On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.