Ola Electric's shares down 4% today: Here we decode why
What's the story
Ola Electric, a leading name in the electric two-wheeler space, has seen its stock price tumble. The company's shares declined by more than 4% today to hit ₹54.23, amid reports of regulatory violations. According to Bloomberg, Ola Electric is facing scrutiny for allegedly violating India's Motor Vehicles Act. This has resulted in vehicle seizures, showroom closures, and inspections in several Indian states.
Certification deficit
Over 95% of showrooms lack necessary certification
According to a Bloomberg investigation, out of approximately 3,400 showrooms for which data is available, more than 95% lacked the necessary trade certificates under India's Motor Vehicles Act. This certification is mandatory for displaying and selling vehicles, providing test rides, or delivering unregistered two-wheelers. The report also noted that at least six local transport officials are currently probing Ola Electric for alleged violations of these rules.
Response
Spokesperson refutes regulatory violation claims
An Ola Electric representative has called the reports of non-compliance "misplaced" and "prejudiced." Despite the claims, the company's stock continued to decline after the news. It fell over 4%, hitting ₹54.31 on the NSE today, close to its 52-week low of ₹53.71 set last week. The decline comes as part of a broader trend where the stock has fallen 36% in 2025 and is trading over 60% below its peak since listing in August.
Sales report
Sales fall short of target
Along with the regulatory concerns, Ola Electric's sales numbers have also been underwhelming. The company sold 25,000 units in February, missing the 50,000-unit monthly target set by Bhavish Aggarwal during an earnings call last month. This shortcoming is yet another reason for the company's current woes and stock price drop.