Ola Electric’s stock has faced a dramatic decline, with shares dropping close to its debut price of Rs 76. After its August listing and an initial rally that pushed the stock to an all-time high of Rs 157.40, it has now plunged nearly 48% from its peak. On Wednesday, the stock hit a low of Rs 79.15 before closing marginally higher at Rs 81.76, but analysts warn that it may soon fall below its debut price.
Jigar S Patel, Senior Manager-Technical Research Analyst at Anand Rathi Shares and Stock Brokers, noted that the stock is currently showing weak trends, with strong resistance at Rs 86 now broken. The next target is Rs 75, and selling pressure is being observed across all levels.
This downturn can be attributed to multiple factors, including customer complaints over poor after-sales service and hardware issues with Ola’s flagship S1 series electric scooters. As per government portal Vahan, the company sold 24,665 units in September, down from 27,587 in August, signaling a decline in sales.
With ongoing service-related problems, including malfunctioning hardware, glitchy software, and spare part shortages, the company is facing growing competition in the EV space. As a result, market experts are advising investors to avoid Ola Electric shares for the time being and instead focus on companies with stronger fundamentals.
