Ola Electric, led by Bhavish Aggarwal, saw its stock plummet to around ₹90 during Monday’s morning trade, as dissatisfied customers took to social media to express a range of complaints about its flagship electric two-wheeler. The company’s stock dropped 8.5% to ₹90.26, a significant fall from the previous session. Ola Electric had initially debuted on the stock market at ₹76 and had even reached ₹157.40, but has since experienced a steep decline due to numerous hardware and software issues with its e-scooters, as well as poor service conditions at its centers nationwide.

 

Ola Electric Stock Plummets 43% Since reaching its all-time high, the company’s stock has fallen about 42-43%. Ola Electric is losing market share in the Indian EV market, with its share dropping to 27% in September due to increasing competition and problems with its service centers. Last month, the company sold 24,665 e-scooters, down from 27,587 units in August, according to data from the government transportation portal Vahan.

Rivals of Ola Electric have introduced new models priced similarly to Ola’s offerings. Meanwhile, the S1 series EV scooter has become a significant source of frustration for many customers, who are dealing with recurring issues such as malfunctioning hardware, software glitches, and difficulties in obtaining spare parts, leading to significant delays.

 

Ola Electric Stock Plummets 43% According to trade analysts, the stock is currently unprofitable and trading at elevated valuations. Last month, a frustrated Ola Electric customer set fire to a showroom in Karnataka, amid a surge of complaints about the company’s EV scooters on its social media channels. Reports indicate that Ola Electric receives approximately 80,000 complaints each month.

 

Ola Electric Stock Plummets 43% The decline in Ola Electric Mobility shares shows no signs of stopping, as they continued to drop during today’s trading session. The stock fell below ₹90 for the first time since its listing, hitting a low of ₹89.55 per share, which represents a significant decline of 9.54%.

This decline reflects a 43% correction from the stock’s peak of ₹157.40, reached in mid-August. Several factors are impacting the stock’s performance, including a steady decrease in the company’s market share in the electric vehicle sector, as competitors like Bajaj Auto and TVS Motors are making gains. In September, Ola reported its lowest monthly sales of the year, selling just 23,965 vehicles, marking a decline for the second consecutive month after sales dropped to 26,928 units in August.

Analysts believe that Ola’s diminishing market position is due to competitors launching new models at similar price points to Ola’s products, along with the company’s struggles with its service network, leading to a buildup of unsold scooters.

In the first seven months of CY2024, the market leader averaged monthly sales of 37,695 units. However, sales began to fall in August and continued into September, which has significantly slowed the company’s year-on-year growth—from 105% in June and 112% in July to 46% in August and 29% in September. This ongoing decline in sales has also impacted Ola’s market share, which fell to 27% in September, down from 38% in March and July 2024. The company held a 31% market share in August.

Despite these challenges, Ola made history as the first Indian electric vehicle manufacturer to surpass 300,000-unit sales in a calendar year. In September, Bajaj Auto climbed to the second spot in electric two-wheeler sales, selling 18,933 Bajaj Chetaks and surpassing the TVS iQubes.