Ola Electric Share Crash: In the stock market, sometimes luck changes in an instant, and sometimes hard-earned money is lost in a moment. Something similar is happening with the investors of Ola Electric these days. The stock which had made a spectacular entry and filled people with expectations, has today become a nightmare for common investors. From its all-time high of Rs 157, the stock has fallen by about 86 per cent and is now trading around Rs 21. Let us understand why this condition of this leading electric vehicle company happened.
16% crash in a single day
Monday’s trading session brought huge disappointment for Ola. Falling from the previous closing price of Rs 25.22, the stock fell 16 per cent to a record low of Rs 21.21. However, by the time the market closed, it showed recovery and closed at Rs 24. After this decline, the total market cap of the company has shrunk to only Rs 10,568 crore. This decline of 26 percent in one month and 58 percent in one year is when BSE Sensex has given a positive return of 9 percent during the same period. Let us tell you that after being listed at the issue price of Rs 76 on August 9, 2024, this share touched the peak of Rs 157.53 on August 20. Now that flight has turned into a steep slope.
Questions raised on financial health
The stock of any company is boosted by its strong balance sheet and this is where Ola Electric seems to be losing. The figures for the third quarter (Q3FY26) were enough to break the confidence of investors. The company collected revenue of Rs 470 crore, but its net loss was Rs 487 crore. That means the company suffered more losses than what it earned.
Attractive offers did not work
To handle falling sales and deteriorating morale, the company recently started a community program named ‘Ola Insiders’. The objective was to bring customers back. Under this, many attractive offers like discount of up to Rs 50,000 on new Generation-3 S1 scooter or roadster motorcycle, benefit of up to Rs 20,000 on purchasing a second vehicle and cashback through referral were given. But, all these efforts also could not instill confidence in the investors and the market.
Only stores will be left with 4000 showrooms.
Due to lack of sales, Ola is rapidly closing down its retail network. There was a time when Ola had around 4,000 offline outlets across the country. By December 2025, this figure will come down to 700 and now reports are saying that only 550 stores will be left by the end of March. Along with closure of stores, news of layoffs of employees are also continuously coming to the fore.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.