Stellantis NV, formed after the merger of Fiat Chrysler Automobiles NV and PSA Group, gained about 6.5% after listings in Milan and Paris. Shares jumped 7.7% in Milan, where the ticker STLA replaced Fiat Chrysler’s symbol.
- Stellantis debuts are a culmination of talks the then-PSA CEO Carlos Tavares initiated with his counterpart at Fiat Chrysler in late 2018.
- Tavares now leads an automobile behemoth of about 400,000 employees and 14 brands in an increasingly uncertain future given the increasing shift to cars that run off of batteries and software.
- Analysts see a mixed outlook for Stellantis as the U.S stimulus plan may buoy Chrysler but uncertain outlook for Peugeot in Europe could be a stumbling block.
- Fiat Chrysler and PSA had a combined worth of $47.6 billion, a fraction of the $783 billion market capitalization of world’s most valuable automaker Tesla.
- Fiat Chrysler and PSA estimate to save about 5 billion euros a year by converging vehicles and powertrains, jointly procuring parts and integrating sales and marketing functions.
- Stellantis chairman, John Elkann, has assured investors that the company has resources, diversity, and know-how to successfully capture opportunities in the new era of transportation
Stellantis stock is currently gaining. STLA is up 8.19%
