Ola Electric Shares Down: Electric two-wheeler maker Ola Electric Mobility’s stock fell 5.61% on Monday after reports of raids on its showrooms. It closed down by Rs 3 at Rs 53.36.
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Ola Electric Shares Down 5.61%
Two days ago, there were reports of raids on some Ola showrooms across the country. According to a Bloomberg report, transport officials had shut down several showrooms and seized vehicles due to a lack of trade certificates. Along with this, a show cause notice was also issued to the company by the Transport Department.
Ola Electric has opened 4,000 showrooms since 2022. According to the report, data is available for only about 3,400 of these showrooms. Of 3,400, only 100 showrooms had the necessary trade certificates under the Motor Vehicles Act. More than 95% of the company’s showrooms do not have the basic certification required to display, sell and offer test rides of unregistered two-wheelers.
Ola Electric Said On Ola Electric Shares Down
Ola Electric said the action is wrong and biased. Ola spokesperson says that the investigation is wrong and biased. Ola has inventory of unregistered vehicles in its distribution centers and warehouses in many states. It fully complies with the guidelines of the Motor Vehicles Act and has all the necessary approvals. The company did not provide any information about the raids on the showrooms.
Shares fell 65% from the all-time high. After the listing of shares in August 2024, Ola’s stock has fallen 65% from its peak of Rs 157.53. The company’s shares have fallen by about 20% in the last one month. Apart from this, by December 2024, the company’s market share has come down from 49% to 23%.
| Category | FY25 (Oct-Dec) | FY25 (Jul-Sep) | Change (%) |
|---|---|---|---|
| Operational Revenue | ₹1,045 | ₹1,214 | -13.92% |
| Other Income | ₹127 | ₹100 | 27% |
| Total Income | ₹1,172 | ₹1,314 | -10.81% |
| Total Expenses | ₹1,505 | ₹1,593 | -5.52% |
| Net Loss | ₹564 | ₹495 | 13.94% |
Will lay off more than 1,000 employees. Earlier, it was reported that Ola Electric Mobility Limited will lay off more than 1,000 employees and contract workers. The company wants to reduce its growing losses through this. This job cut will affect several departments, including procurement, fulfillment, customer relations, and charging infrastructure. People familiar with the matter had said that this layoff is part of Ola Electric’s efforts to control costs.
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