Ola Electric Shares Plummet Below ₹100 for the First Time Since Listing - Everything You Need To Know

Ola Electric Mobility is facing a challenging time in the stock market, with its shares falling more than 4% on September 30. This decline has pushed the stock below the ₹100 mark for the first time since its market debut. Over the past month, the stock has dropped more than 16%, marking a tough period for the electric vehicle manufacturer. As of 12:22 PM, Ola Electric shares were trading at ₹98.80 on the National Stock Exchange (NSE).

The company's struggles come as it seeks to expand its reach in India's electric vehicle (EV) market. Recently, Ola Electric launched its 'network partner program' aimed at boosting EV adoption in tier-2 and tier-3 cities. The initiative has already seen 625 partners onboarded, with plans to increase this number to 1,000 before the festive season begins.

Despite these efforts, concerns linger about the company's service capacity. A recent report by brokerage firm HSBC noted that many Ola service stations are overwhelmed with service requests. As Ola Electric prepares to launch its motorcycles, which were unveiled on August 15, improving service efficiency is crucial for the company.

Additionally, Ola Electric's sales have been on a downward trend, with a 34% drop reported in August. Investors are now anxiously awaiting the monthly auto sales data for September, set to be released tomorrow, to determine if this sales weakness has continued.

As Ola Electric navigates this difficult phase, its ability to address service issues and boost sales will be critical in regaining investor confidence. The coming weeks will be pivotal for the company as it strives to stabilize its stock performance and capture a larger share of the growing EV market in India.

Also Read: SEBI Objects to Companies Using IPO Funds for Promoter Loan Repayment - Read Here