Ola Electric Stock Hits Record Low Amid Regulatory Concerns and Investor Uncertainty

, the Bengaluru-based electric vehicle giant, has hit yet another roadblock as its shares plummeted to a new all-time low of ₹73.05 on Friday, marking a grim milestone for the company. This steep drop comes after a week of volatility, with the stock repeatedly hitting new lows, causing concern among investors.

What’s Behind the Plunge?

Ola’s sharp decline began on November 5, when its shares fell 8.24% as the 90-day lock-in period for anchor investors expired, allowing them to offload their holdings. The end of this lock-in period has been a critical turning point, sparking widespread selling pressure and pulling the stock down further each day. Since its IPO debut on August 9, Ola Electric’s stock has now fallen nearly 20%, a drastic drop from its all-time high in August.

Adding to investor unease, Ola Electric recently launched a promotional campaign called the “BOSS of All Savings” sale, aimed at attracting customers with savings of up to ₹15,000 on its popular Ola S1 model. While this initiative may boost consumer interest, it has raised questions about the company’s pricing strategy and transparency. ARAI (Automotive Research Association of India) has reportedly expressed concern over the lack of prior notification about price adjustments for the S1 X 2 kWh model, a move that could jeopardize the model’s eligibility for a government subsidy under the PM E-DRIVE scheme.

An Uphill Battle Ahead for Ola Electric

As Ola Electric grapples with these challenges, the company has announced plans to launch “educational clinics” at its stores nationwide. These clinics aim to educate customers about the Ola S1’s total cost of ownership (TCO), technology features, and overall performance, hoping to regain consumer trust and improve public perception.

Despite these efforts, Ola’s stock remains in a precarious position. The shares briefly fell below the IPO price of ₹76 on October 29, a threshold that many investors consider a critical level, and have struggled to recover ever since. On Friday, the stock closed 1.62% lower at ₹73.35, marking a persistent downward trend that continues to weigh heavily on the company’s outlook.

The Road Ahead: Investors and Market Watchers Brace for More Volatility

With regulatory scrutiny looming and investor confidence shaken, Ola Electric faces an uphill battle to stabilize its stock and regain momentum. Bhavish Aggarwal’s vision for an electric vehicle revolution in India now finds itself at a critical juncture, as the company navigates market challenges and regulatory oversight. As Ola works to reassure investors and consumers alike, all eyes will be on its next moves to see if it can steer back on course or if further turbulence lies ahead.