Ola Electric shares plummet to Rs.90 amid customer backlash on social media

In September, Ola Electric’s market share in the Indian EV segment fell to 27%, down from 30% the previous month

October 7, 2024

Ola shares drop marking an 8.5% decrease from the previous trading session

Ola Electric, led by CEO Bhavish Aggarwal, experienced a significant decline in its stock price on Monday, with shares dropping to approximately Rs.90.26, marking an 8.5% decrease from the previous trading session. This steep fall comes as frustrated customers took to social media to voice their complaints about ongoing issues with the company’s flagship electric two-wheeler.

The company, which debuted on the stock market at Rs.76 and peaked at Rs.157.40, has seen its stock value decline by about 42-43% since that high, largely due to mounting hardware and software problems with its e-scooters and poor service conditions across its centers nationwide.

In September, Ola Electric’s market share in the Indian electric vehicle (EV) segment fell to 27%, down from 30% the previous month, as competition intensified. The company reported sales of 24,665 e-scooters last month, a drop from 27,587 units sold in August, according to data from the government transportation portal, Vahan.

As rivals launch new models priced competitively with Ola’s offerings, many customers of the S1 series EV scooter have reported persistent issues, including malfunctioning hardware and software glitches, along with difficulties in obtaining spare parts, leading to significant delays in service.

Trade analysts have noted that Ola Electric’s stock is currently trading at high valuations despite the company’s ongoing losses. The situation escalated recently when an aggrieved customer set fire to an Ola showroom in Karnataka, underscoring the level of frustration among consumers. Reports indicate that Ola Electric receives approximately 80,000 complaints each month regarding its vehicles.

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