MUMBAI: Ola Electric Mobility is witnessing a massive decline in its share price, losing two-thirds of its value since its peak in August 2024.
The stock, which hit an all-time high of Rs 157.53 on August 20, 2024, is now trading at Rs 53.80, reflecting a steep discount of 66 per cent. This sharp decline is attributed to a combination of factors, including falling sales, accumulating losses, and regulatory hurdles.
On Monday, shares of the electric two-wheeler manufacturer fell nearly 5 per cent following reports of store raids, vehicle seizures, and the shutdown of showrooms. This drop mirrors a similar decline the company experienced recently when it laid off nearly 1,000 employees as part of cost-optimization measures.
A senior analyst at a leading brokerage firm highlighted that growing competition from legacy players and Ola’s ongoing regulatory challenges are weighing heavily on investor sentiment. “From consumer complaints regarding after-sales services to fresh reports of raids and showroom closures, Ola Electric has been in the news for all the wrong reasons. On the other hand, competitors like Bajaj Auto and TVS Motor are growing steadily without creating any fuss,” said the analyst, requesting anonymity.
He added that the company’s poor performance in Q3FY25 has further exacerbated its troubles.
Ola Electric reported a 19 per cent year-on-year decline in revenue for the quarter ended December 2024, with net losses surging to Rs 564 crore compared to Rs 376 crore in the same quarter of the previous fiscal year.
The company’s sales have also been under significant pressure. In February 2025, Ola Electric sold over 25,000 units, marking a 26 per cent decline compared to the 33,846 units sold in the same month the previous year.
While Ola claims it remains the market leader in the electric two-wheeler segment, its sales and market share have declined significantly from the highs of last year. This drop comes despite new product launches and aggressive discounts offered by the company.
The exodus of senior executives and consecutive rounds of layoffs have further dented investor confidence in the company’s outlook. Analysts suggest that Ola Electric needs to address its operational and governance shortcomings rather than focusing solely on aggressive expansion plans. “The company should address its shortcomings rather than announcing aggressive expansion plans to build investor confidence,” the analyst stated.