Ola Electric stock bounces back with 4.5% gain after 3-day slump, still down 15% in January | Stock Market News

Shares of Ola Electric Mobility, India’s leading two-wheeler electric vehicle manufacturer, staged a strong rebound in trade on Tuesday, January 14, ending their three-day losing streak. 

Ola Electric share price opened today’s session at ₹71.50 apiece and continued to surge, reaching a day’s high of ₹73.46—a 4.61% gain compared to the previous closing price of ₹70.18. Despite today’s pullback, the stock is still 15% down in the current month so far. 

In recent sessions, the company’s shares have faced heavy selling pressure from Dalal Street investors, reacting to negative developments, causing the stock to slip below its IPO price of ₹76 on January 9, closing at ₹75.27 apiece.

Market regulator SEBI recently warned the company for violating listing norms by sharing store expansion plans on social media before informing stock exchanges. In a letter shared on the BSE by Ola Electric Mobility, SEBI raised concerns about the dissemination of information regarding plans for a four-fold expansion of the company-owned store network by December 20, 2024.

On December 2, the company announced its intention to expand its company-owned store network to 4,000 by December 20, 2024, adding over 3,200 new stores to its then-existing 800 stores.

In a separate filing, Ola Electric Mobility stated that the Karnataka High Court has granted the company a six-week extension to respond to the Central Consumer Protection Authority (CCPA)’s request for additional documents and information.

Last month, the CCPA sought further details from Ola Electric regarding a show-cause notice issued in October related to 10,644 consumer complaints. On October 22, the company stated that it had resolved 99.1% of the complaints received.

Earlier, on October 7, the CCPA had issued a notice to the company for alleged violations of consumer rights, misleading advertisements, and unfair trade practices.

Sold over 4 lakh EVs in CY2024

The company concluded 2024 with a record-breaking performance, selling 407,547 units—a 52% jump compared to the 267,376 units sold in CY23. Despite tough competition in the 2-wheeler electric vehicle (2W EV) space, the company managed to improve its market share to 35% in 2024, retaining its position as the market leader in the 2W electric category.

Among the four quarters of CY24, Q1CY24 was the best-performing quarter for the company, with 120,130 units of 2W EVs sold, according to recent media reports.

On Christmas Day 2024, Ola announced it had expanded its network to encompass 4,000 stores across India. With 3,200 new stores co-located with service centers, this expansion aims to make Ola’s EVs more accessible across metro areas as well as Tier-2 and Tier-3 cities.

Led by co-founder Bhavish Aggarwal, the company is working to penetrate India’s smaller towns while bolstering its after-sales service. “By leveraging its direct-to-consumer (D2C) model, Ola is ensuring that EV ownership becomes a reality for every household, breaking barriers to adoption and offering relief from rising petrol prices and high cost of ownership of ICE vehicles,” the company said in an exchange filing on December 25.

Ola Electric’s single-day store launch blitz highlights its efforts to expand market share and strengthen its reputation after a tumultuous year. 2024 was marked by a blockbuster stock market listing in August, followed by an onslaught of consumer complaints and regulatory scrutiny, which led to investors hammering the stock.

In November, global brokerage Citi Research initiated coverage of the stock with a ‘buy’ rating and a target price of ₹90 per share.

(with inputs from agencies)

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