VinFast Burns Rubber, Buffet Steps Back From GM, Farley’s Charging Epiphany

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Welcome to Wednesday as Steve Greenfield joins Paul on the show again. Today they’re talking about VinFasts debut on Nasdaq, Warren Buffet divesting from GM big time, and Jim Farley’s revelations from his recent charging road trip. 

Show Notes with links:

• Vietnamese electric-vehicle maker, VinFast, has made a remarkable debut on the Nasdaq, skyrocketing its market valuation to $85 billion. This surge propels it past automotive giants like Ford and General Motors. The company's shares soared by over 270% from its SPAC's IPO price, marking it as this year's top-performing de-SPAC debut on a U.S. exchange.
  • VinFast is characterized as a low-float company, with only a limited number of shares (1.3 million) available for trading post-redemptions. This makes the stock susceptible to significant fluctuations.
  • Pham Nhat Vuong, the founder of VinFast and Vietnam's richest individual, holds a dominant control over the company, owning about 99% of it.
    
    
• Warren Buffet’s Berkshire Hathaway has significantly reduced its stake in GM by 45%, slashing its shares from 40 million to about 22 million. The move, revealed in a recent SEC filing, comes amidst growing investor concerns and GM's notable stock fluctuations. The motivation behind the sale remains undisclosed.
  • The firm's GM shares were cut from approximately 40 million to around 22 million, as revealed in a quarterly filing with the U.S. Securities and Exchange Commission
  • GM chose not to comment on the stake reduction, and Berkshire Hathaway also remained silent on the matter.
  • The exact reason for Berkshire Hathaway's sale remains uncertain, with possibilities ranging from concerns about UAW risks, waiting for stock rallies, or simply wanting to reallocate capital.
  • In the same filing, Berkshire Hathaway disclosed new investments in various homebuilder companies.
    
    
• Ford CEO Jim Farley recently took a road trip in the F-150 Lightning electric truck along Route 66, testing the vehicle's capabilities. During his journey, Farley encountered challenges with charging the Lightning, highlighting the need for improvements in the customer experience.
  • In a video posted on ‘X’ Farley described the charging issues as a "really good reality check" on the difficulties customers face with public chargers.
  • To address these challenges, Ford is collaborating with Tesla to give Ford vehicles access to over 12,000 Tesla Superchargers. Additionally, Ford's certified dealers are installing fast chargers.

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