Shares of Ola Electric Mobility jumped nearly 17% on Thursday, while the overall market remained weak. The stock has risen about 22% in just two days. This increase has come after the announcement of the company’s in-house made Lithium Iron Phosphate (LFP) cell. On Thursday, the company’s shares reached Rs 35.30, due to which the market cap increased by more than Rs 2,850 crore and the total value reached around Rs 15,600 crore.
What will be the benefit of the new LFP battery?
Company founder Bhavish Aggarwal said that their new LFP cell is ready and it will be used in scooters from the next quarter. This is the new 46100 format cell, which is bigger and better than the existing battery. With this new technology, EV scooters can become cheaper, which will motivate more people to adopt electric vehicles. Besides, the company will also be able to advance its big battery storage plan.
fast work in gigafactory
The company said that work in its Gigafactory is progressing rapidly. At present its capacity is 2.5 GWh, which is being increased to 6 GWh. Thousands of scooters powered by the company’s Bharat Cells are running on the roads and performing well. However, the new LFP battery is yet to receive some necessary government approvals.
Strong comeback in sales in March
The company saw a strong recovery in sales in March. In the last week of the month, more than 1,000 orders started being received daily. Registrations also increased from 3,973 units in February to 10,117 units in March, an increase of more than 150%.
Confidence increased due to improvement in service
The company says that behind this increasing demand is a major improvement in the service system. Now more than 80% of scooters are being serviced on the same day. Customer confidence has increased due to better parts supply, faster inspection and better management.
There was also a decline in earnings
However, the company has suffered a setback on the financial front. The company’s earnings fell 55% to Rs 470 crore in the October-December quarter, which was Rs 1,045 crore in the same period last year. Overall, due to new battery technology, better service and increasing demand, Ola Electric’s business seems to be gaining momentum again.