Stellantis, the corporate created by the merger of Fiat Chrysler Vehicles and Peugeot proprietor PSA Group, had a optimistic begin on its European inventory market debut.

The corporate’s shares rose 8 p.c on their first buying and selling day on Monday, valuing the enterprise at round 42 billion euros ($51 billion).

“We’ve got the dimensions, the assets, the range and the know-how to efficiently seize the alternatives of this new period in transportation,” Stellantis Chairman John Elkann mentioned in a video on the Borsa Italiana web site.

Stellantis CEO Carlos Tavares mentioned the merger would add 25 billion euros ($30 billion) in worth for shareholders over time, due to projected value cuts and financial savings.

“I can inform you that the main focus from day one might be on the worth creation that’s the results of the implementation of these synergies,” Tavares mentioned in the identical video.

Stellantis was created on Saturday with the completion of the merger between FCA and PSA.

With annual manufacturing of round 8 million automobiles and revenues of greater than 165 billion euros, the corporate is predicted to play a key function within the business’s bounce into the brand new period of electrification.

Stellantis can have 14 manufacturers, from FCA’s Fiat, Maserati and U.S.-focused Jeep, Dodge and Ram to PSA’s historically Europe-focused Peugeot, Citroen, Opel and DS.

Stellantis shares began buying and selling at 12.758 euros in Milan the place the ticker STLA changed Fiat Chrysler’s image and at 10:00 GMT have been up 7.5 p.c at 13.51 euros.  The Paris-listed shares, the place the corporate listed instead of Peugeot SA, traded across the identical degree. That compares with FCA‘s shut on Friday at 12.57 euros.

The inventory will debut in New York on Tuesday.

A Milan-based dealer mentioned a part of the rise could be defined by technical causes, with funds shopping for shares to regulate their portfolio exposures to the brand new firm. Additionally, former FCA buyers are reinvesting a part of the proceeds of a 2.9 billion euro particular divided FCA paid them final week, a second dealer mentioned.

Tavares, 62, will maintain his first information convention as Stellantis CEO on Tuesday, after ringing NYSE’s bell with Elkann.

FCA and PSA have been value a mixed 39.4 billion euros ($47.6 billion) on the shut of buying and selling final week, a fraction of the $783 billion market capitalization of Tesla, the world’s most respected automaker.

Over the weekend, PSA shares have been exchanged into new FCA shares. All FCA shares have been then renamed as Stellantis.

Intesa Sanpaolo analyst Monica Bosio mentioned she anticipated markets would begin pricing in synergies at Stellantis solely as soon as their impression turns into seen, ranging from the second half of this 12 months.

“Nonetheless, even excluding synergies, we proceed to view Stellantis as underappreciated on all metrics compared with its most direct friends,” Bosio mentioned in a observe.

FCA and PSA have mentioned Stellantis can reduce prices by greater than 5 billion euros a 12 months with out plant closures.

Bloomberg Intelligence analyst Michael Dean mentioned Stellantis faces a blended outlook.

U.S. stimulus plans could buoy Chrysler however there’s a extra unsure outlook for PSA in Europe amid continued lockdowns, he mentioned.

Dean expects Tavares to current a brand new technique within the first 100 days of his stewardship of Stellantis, simply as he did following PSA’s acquisition of Opel from Common Motors in 2017.

Reuters and Bloomberg contributed to this report