Ola Electric shares fell to Rs.90.26/- each, marking an 8.5 percent decrease from the previous trading session.
Mumbai: Ola Electric, led by Bhavish Aggarwal, experienced a significant drop in its stock price, falling to approximately Rs.90/- during morning trading on Monday. This decline was driven by a surge of frustrated customers voicing various complaints about its flagship electric two-wheeler on social media.
The shares plummeted to Rs.90.26/-, representing an 8.5 percent decrease from the previous session. The company initially launched on the stock market at Rs.76/- and peaked at Rs.157.40/- but has since faced numerous hardware and software issues with its e-scooters, alongside subpar conditions at service centres nationwide.
Since reaching its all-time high, the stock is now trading about 42-43 percent lower.
The electric vehicle firm continues to lose market share in the Indian EV sector, with its share dropping to 27 percent in September due to increasing competition and struggling service centres. Sales of e-scooters fell to 24,665 units last month, down from 27,587 in August, according to the government transportation portal Vahan.
Rivals have introduced new models that are competitively priced, while the company’s flagship S1 series scooter has become a significant source of frustration for many customers. They are facing ongoing issues such as malfunctioning hardware, glitchy software, and difficulty obtaining spare parts, leading to significant delays in service.
According to trade analysts, the stock is currently in a loss-making position and is trading at high valuations.
An upset Ola Electric customer set fire to a showroom in Karnataka last month, as the company’s social media channels were inundated with complaints regarding its electric scooters. Reports indicate that Ola Electric receives approximately 80,000 complaints each month.
