Ola Electric Shares Fall Nearly 8% To Hit Fresh Low

Continuing its downward trend this week, Ola Electric’s shares plunged 7.90% today (November 5) to hit another low at INR 74.23. 

This brings Ola Electric’s share price down by a staggering 53.22% from its peak of INR 157.53, reached on August 20, 2024.

The company’s market capitalisation has now slipped to about $3.89 Bn. 

Notably, Ola Electric’s share price dropped below its listing price of INR 76 last month. 

After its August 9 debut, the stock initially surged, nearly doubling to INR 157.53 within a few weeks before reversing course.

Multiple factors have led to the company’s share prices slide down over the past couple of months. One of the primary reasons behind the downward movement has been an increasing number of complaints about the company’s e-scooters in recent times. 

Meanwhile, the company informed on Monday that it’ll declare the September 2024 quarter (Q2 FY25) results on Friday (November 8). 

The company has been struggling to achieve profitability lately. The company’s consolidated net loss rose 30% to INR 347 Cr in the June quarter of the financial year 2024-25 (Q1 FY25) from INR 267 Cr in the year-ago quarter.

While earlier this month, the company received a show cause notice from the Central Consumer Protection Authority (CCPA) over alleged violation of consumer rights, misleading advertisement and unfair trade practices. 

“The CCPA has provided a timeline of 15 days to the company to respond to the show cause notice. The Company will respond to the CCPA within the given timeframe with the supporting documents,” Ola Electric said in a regulatory filing on October 8.

On October 21, the company claimed that it had resolved 99.1% of the 10,644 complaints that it had received from the CCPA. Further, it also said that it has a “robust mechanism” to address complaints raised with respect to its vehicles.