It appears that investors are losing confidence in Ola Electric Mobility, India’s leading two-wheeler electric vehicle manufacturer, as the shares have remained under severe stress in recent months, falling to levels not seen since its listing.
The stock has crashed 56% from its December 2024 high of ₹102.50 to the current price of ₹50.77 apiece, ending the last three months in the red. In the previous trading session, it touched a fresh record low of ₹45.35 apiece, taking the current month drop to another 4.6% so far.
This sustained crash in Ola Electric’s share price has pushed it 71% below its one-year high of ₹157.40, which it attained in August 2024 and 33% below the IPO price of ₹76 apiece.
The sharp correction in the stock price has wiped out billions in retail investors’ wealth, as they collectively held a 51.3% stake in the company as of the December quarter.
What is weighing on Ola Electric’s share price?
Ola Electric has been facing multiple challenges recently, including the slower-than-expected growth of the electric two-wheeler (EV 2W) industry, market share loss within the segment, delays in its motorcycle launch due to homologation issues, and profitability pressures stemming from increased warranty-related costs, according to analysts.
The company has also come under scrutiny for discrepancies between its reported sales figures and actual vehicle registrations. In February 2025, Ola claimed sales of over 25,000 units; however, data from the government’s Vahan portal showed only about 8,600 registrations during the same period.
According to a Bloomberg report, Ola included bookings for its yet-to-be-launched electric motorcycles and third-generation e-scooters in its February sales numbers, inflating its market share as it struggles to regain investor confidence.
In a March 21 letter to India’s Ministry of Road Transport and Highways, the Bengaluru-based EV startup disclosed that “confirmed orders” for February included 10,866 bookings for third-generation e-scooters—though deliveries only began in March, as per the Bloomberg.
The report said that the company counted 10,866 e-scooter bookings and 1,395 Roadster X motorcycle bookings as “confirmed orders,” even though these models had not been delivered or, in some cases, officially launched.
Additionally, the company faced legal trouble when Rosmerta Digital Services, one of its former registration service providers, filed an insolvency petition against its subsidiary Ola Electric Technologies over alleged payment defaults. The petition was later withdrawn after Ola settled dues amounting to ₹267.5 million.
The company has also been under intensifying regulatory scrutiny. Last year, India’s market regulator issued a warning after Ola shared an announcement on X (formerly Twitter) before informing stock exchanges. In October, the Central Consumer Protection Authority served Ola a notice over alleged violations of customer rights, misleading advertisements, and unfair trade practices.
While analysts expect profitability to improve in the coming quarters due to cost-cutting measures, they believe that the volume uptick will likely fall short of Street expectations.
Technical outlook: Experts see more pain ahead for the stock
Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said, “Ola Electric has corrected over 71% from its IPO high in just 33 weeks, with a steep 55.75% fall in the last 18 weeks from the swing high of ₹102.5. While a sharp bounce was seen in mid-March on high volumes, the lack of follow-through makes the structure fragile. The recent bounce-low of ₹46.37 is now under threat. A close below ₹46 will confirm a fresh breakdown, potentially dragging the stock swiftly toward the ₹35 zone. Momentum remains weak.”
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
