Looking for the most exciting global stocks to trade? You will find them in SimpleFX. We have just added an exciting company listed on the Euronext Paris stock exchange. It went public on Monday.
Stellantis NV (STLA.FR) is a completely new entity created by a 50-50 merger agreement between two European automotive giants: Fiat Chrysler Automobiles, founded in Turin, Italy, and headquartered in London, with Paris-based PSA Group, manufacturer of Peugeot, Citroen, and Opel. The new company operates 14 car brands.
The company replaced Peugeot SA in the Paris Stock Exchange and has risen over 10% in the first three days of trading. The merger is said to save the two companies approximately 5 bn euros in costs, as they will save money on parts procurement, as well as run joint operations such as sales and marketing.
The IPO is an effect of a two-year process led by PSA CEO Carlos Tavares. The company hired 400,000 employees. Before the merger, Fiat Chrysler and PSA had a joined value of 39.5 bn euros ($48 bn). This is less than 6% of Tesla’s valuation which stands at $844 bn at the moment. One could argue that the disproportionate capitalization has no fundamental explanation, and this makes trading car companies so exciting.
The upcoming years are extremely challenging for the automakers as two strong trends are disrupting the industry: batteries are replacing combustion engines, and AI-driven software is taking over as well.
At the moment STLA.FR is trading at 14.09 euro per share. Apart from Stellantis and Tesla, you can trade automotive stocks day and night as we also provide Volkswagen (Frankfurt), Renault (Paris), Volvo (Stockholm), Tesla (NASDAQ), General Motors (NYSE), Toyota, and Suzuki (Tokyo).
The sun never sets over SimpleFX stock markets 🙂
Good luck profiting from the exciting and volatile automotive industry!