In this video I Want to show you a company that went public on August 15, 2023. Now this company is called Winfast I Love that name Now Winfast is a six year old car company out of Vietnam In fact, they're actually registered in Singapore but that's not the point here. The point is that this car company from Vietnam sold 7 500 Vehicles last year and all of them actually Internal Combustion Engine Vehicles No EVS at all. Now this year they've decided to Pivot into electric vehicles with the goal of producing 50 000 vehicles in a single year and delivering two billion dollars in sales.

In July of 2021, they went ahead and assembled The A-Team They got the former CEO Chief Executive Officer of Opel. Now in case you haven't heard of Opel that's the ugly sister of the German Auto industry but still a German manufacturer. CEO Came in and took over this company. That's great.

Only problem is that mother lover left after five months. He was like this: I'm out. no thanks this I'm out of here so you gotta wonder what he saw in there to make him quit after five months now. the new CEO of the company is actually a lady by the owner of Madame Tui Now she's a fine lady and she obviously knows business she went to Harvard Business School but you know she's a former Lehman Brothers Banker Now, not to mention the issues that have to do with Lehman Brothers going bankrupt.

But whenever you hire a banker to manage a car company, that's always a recipe for success And you know that's how the target Works Putting a 50 000 car Target on the first year of EB Productions of a brand new car company, Only a banker can think that that makes sense. The problem is now: this company is worth 70 billion dollars at least as of the making of this video. Which means it's bigger than the Ford Bigger than GM and only second to Tesla. Now the first warning sign that you should have spotted here is that the fact that this company went public as a SPAC Yes, SPAC You're not back in 2021.

We don't have a DeLorean and a dark brown here. We definitely don't have 1.21 gigawatts you watch, but this company went back in 2023. Now for those of you who forgot what SPAC is, SPAC is essentially a special purpose acquisition. Corporation All it does is cheats the system.

If you want to go public. quick, cheap, and without the scrutiny of the SEC, that's how you do it. A company with just money, no business activity goes public. Obviously there's no business to be scrutinized, then that company.

That company actually merges into an existing business which is a private company. and then the private company survives the merger, therefore becoming de facto the public company. That's all it is. Now, the crazy part about it is that now the cats is out of the bag.

Everybody knows that a SPAC is basically a scam and we've seen that happen with multiple companies that were supposed to be the next. Tesla Nikola Lordstown Canoe, blah blah All these companies that went under based on that Eevee Hype of the Next Tesla storyline that was absolutely overvalued, overhyped, and total BS The the market have learned its lesson. Well, apparently not because Wind Fast is now being tagged. it's the new Tesla out of Asia now in 2023 based on August numbers, there's only been 22 packs compared to 600 in 2021, so specs have pretty much died out.

But not this company. now. why would this company go Spack? In my humble opinion I think they didn't have a choice and I'll explain in a second why. But here's the thing.

Look at it this way: This is a company that just went public through a spec. Now it's all hyped up as the next Tesla out of Asia It has very little to no sales of electric vehicles 7 500 Vehicles sold ice vehicles in 2022. It's ballooning all the way up to 70 billion dollars in market cap. It has a CEO that's a banker not from the Auto industry and it has some strange Outlook numbers that just don't add up.

And you know what? even if this Outlook actually pans out and they do manage to sell 50 000 cars in 2023, and they actually managed to drive two billion dollars of sales, that means they're now trading at 35x sales price to sales. of 35 which is identical to Nvidia with 36. So this company is concentrating on the same quality level as Nvidia. Imagine that.

Now to me, that sounds a lot like that famous quote about not getting fooled twice. Fool me once. Shame on shame on you It Boom We Can't Get Fooled Again This thing is literally a play from the 2021 Playbook of hype and Eevee Bubbles and it's playing right in front of you and some people are still falling for that I Just don't understand how listen to the CEO itself. They've asked this lady why they went Spack, especially when spacs are pretty much dead and her answer was basically look, we wanted to do an IPO We didn't do an APO because the market was bad.

Now that the market is better. after we cancel our IPO we now have to go fast to catch the market so we're going back. We we were ready to do a traditional IPO we um, we pursue the path for almost two years, but the markets have been challenging so we decided to decouple the listing from from the fundraising. We got the financial banking from our parents company and we we went ahead with the listing by way of Spank.

Now to me, that doesn't add up to me. It sounds more like no, nobody wanted to touch this IPO And they had to go spack because this was the only way for them to hit the public market and get that money. But forget this pack talk. What about the cars themselves? Well, the cars are truly a work of art.

Bellissimo Motor Trend Actually reviewed this car, the Vf-8 and it said it was nowhere near ready for deliveries. Titling the article Return to Sender Now Kelly Blue Book Actually put an article titled Vinfest Reviews are abysmal now. Hard to sugarcoat a piece of turret, even with a really nice external design, but that's what happens when you don't have any expertise in building cars. You can ask Elon It takes a lot of time to master the art of producing Vehicles The parent company then group was established way back in 93 and until 2017 all it did was investing real estate Investments Retail investments.

In 2017, they decide to form a subsidiary which will be an auto manufacturer in Vietnam and in 2022, they've managed to push out 7500 cars internal combustion engine cars. now in 2023, all of a sudden they're an EV expert and they plan to sell 50 000 cars. Now look, if you think that two plus two plus two equals 571, this makes perfect sense. Otherwise, this doesn't add up.

Now look. The Vf8, which is the current question here, is currently retailing in the US for 46 000 with a range of 260 miles and no EV credit because it's produced in Vietnam while the model Y is actually retailing for forty eight thousand dollars with a 7 500 credit, a range of 300 miles. So in fact, the model Y is currently cheaper than the Vf8 now. I Can think of a single person in the United States that's gonna go.

You know what? I Don't want to test that I Want to win fast for more money? How is this thing gonna work? well? Look, as far as the quality, there's been many complaints. The driver assist system, the blinkers, the air conditioning, the accelerator. The funniest of them all was the seats overheating to the point of boiling people's ass. I mean this thing ain't ready.

In fact, every single car they sold in the US was already recalled for the screen just randomly shutting off. Now these guys are ruthless and I don't know what they'll do about my video, but in Vietnam they filed a police report against a YouTuber who criticized their car. I Mean that reminds me a lot of Nikola But as a Nikola case, this thing is not going to stop me. Now, if you open up the perspectives of this fine company, you'll find a warning from the company.

and I'm quoting the company right now on page 17 of the prospectus, we have a significant additional Capital through debt or selling shares requirement. Basically, they're telling you in the perspectives they're going to need way more money to survive either through the Looting you or through taking on more debt and paying interest. In any case, it's the company saying it not me, and things get crazier when you keep looking at the perspectives. The SPAC initially had 285 million dollars that were supposed to go into Winfast, But like in every spec, when the spec announces the target people can redeem their money if they don't like the target company.

Now out of the 285 million, only 150 million stayed in. The rest of them are gone. half the people just basically bolted and I'm sure some of them are dead or they just forgot their password. they forgot to put their money there.

But essentially the whole SPAC just brought in into Winfest at 150 million dollars. Whoopty. do their card cash position. Before that infusion was 158 million dollars.

Now their current liabilities at three and a half billion dollars. and in 2022, they lost 1.8 billion dollars. In fact, in Q1 of this year, in just a single quarter, they lost 470 million dollars. which is more than they have in their cash right now in a single quarter.

Now, where is this thing is going to come out of? How the hell are they going to survive next year? Forget next five years. Not to mention that their cost structure is abysmal. In 2022, they sold 525 million dollars worth of cars. The cost of goods was one billion dollars, which means they are losing money on every single car.

In fact, they're losing double than what they're making. Now look, the dude who owns this company is worth Five billion dollars And that's a lot of money. But just to understand this, this company lost in 2022, almost half of what this mother lover is worth. Now, who in the right mind is going to give this company money Who? Even if this guy the owner decides to personally bankroll this company out of his pocket which is highly unlikely and put every cent he has into this company.

It's about two years worth of operations and there it's gone. Not to mention the fact that this stock has three bad times coming. Number One: The lockup is going to expire. Every single spec shareholder is currently sitting in this valuation is waiting for the six month lockup to expire.

Within six months, they're allowed to sell the shares and I guarantee you a lot of them will bolt. Number Two: We have more dilution coming. The company told you they have to sell more shares to get more money in. We have more debt coming.

They have to raise capital. All of these things are going to crash this sock like a stone and the people who are left in it because they were greedy. They're going to pay Hefty price. And even though we're talking about one company here, this thing is not idiosyncratic.

In fact, it's the opposite. This happens every day and many people fall in this trap. If you want to learn how to avoid this, I Made a whole video explaining how to properly identify great companies to invest in and how to avoid trash. I'm gonna put the video right here for you guys to go check it out.

below. It is going to be the Subscribe button if you haven't yet and I'll see you there in just a second.