Ola Electric shares surge 20%, defying weak market trend
What's the story
Ola Electric Mobility's share price has witnessed a massive surge, rising over 16% in intraday trade to ₹35.27 today. The stock had already gained 5% on Wednesday, closing above the ₹30 mark for the first time in nearly two months. In just two trading sessions, the scrip has gained over 20%. This comes despite a broader market sell-off with benchmarks Sensex and Nifty falling over 1% each.
Tech advancement
Announcement of in-house lithium iron phosphate cell
The recent surge in Ola Electric's share price comes after the company announced on April 7 that its in-house Lithium Iron Phosphate (LFP) cell is now ready. The new 46100 format LFP cell, which is bigger than the current NMC 4680 Bharat Cell, marks a major step forward in scale, cost efficiency, and applicability across both mobility and energy storage solutions.
Growth strategy
Ola Electric is expanding its battery manufacturing footprint
Ola Electric is also expanding its battery manufacturing footprint and scaling up its Gigafactory. The company said thousands of vehicles powered by its 4680 Bharat Cells are already on Indian roads, having clocked many millions of kilometers in real-world conditions. The Gigafactory currently has a capacity of 2.5GWh, which is being ramped up to 6GWh.
Tech impact
Readiness of LFP cell marks a pivotal moment
Ola Electric's spokesperson said that the readiness of their LFP 46100 cell is a pivotal moment in their journey to build India's most advanced EV and energy ecosystem. The company believes that the introduction of LFP chemistry will help reduce vehicle costs and support wider EV adoption. It also noted that this new cell format will support battery storage solutions and represent the next phase of expansion at its Gigafactory.
Adoption strategy
Ola Electric's focus on reducing barriers to EV adoption
Ola Electric is focused on reducing barriers to EV adoption through innovation-led and customer-focused initiatives. These include affordability programs, service guarantees, buyback assurances, and direct pass-through of government incentives such as PLI benefits to customers. The company's recent recovery has also been supported by improving operating performance with registrations surging 150% year-on-year (YoY) in March compared to February.