The stock of Ola Electric, which is owned by Bhavish Aggarwal, fell even lower in the early trade on Wednesday, reaching its lowest point at Rs 103 per share. Trade analysts kept advising ordinary investors to hold off on investing until there was more stability.
The electric two-wheeler company’s share price plummeted to Rs 103 per share, a staggering 35% decline from its peak of 157.40.
Due to Ola Electric’s speculative price and increasing competition, market professionals have previously cautioned individual traders against being overly optimistic about the company.
In the face of growing competition from rivals like TVS Motor and Bajaj Auto, Ola Electric’s market share has been declining. The market share of Ola Electric decreased to 31% in the previous month.
The company that makes electric vehicles saw its lowest monthly sales last month, falling 34% sequentially to 27,506 units.
According to trade analysts, the stock is currently losing money despite its high valuation.
Santosh Meena, Head of Research at Swastika Investmart Ltd., stated that “only aggressive investors should consider staying invested, even though the growth outlook remains strong.”
Market observers claim that the stock is overvalued and will eventually correct itself, therefore only investors willing to take significant risks should consider it.
Ola Electric received a barrage of complaints about their EV scooters on social media this month after a disgruntled customer set fire to the company’s showroom in Karnataka.
The accused recently purchased a new Ola electric scooter, but it had issues that needed to be fixed, necessitating frequent trips to the dealership. After his car broke down and he kept having disputes, he bought petrol, poured it on the showroom and set it on fire.
Ola Electric’s support centres are inundated with complaints every month, estimated to be in the range of 80,000. Even 6,000–7,000 complaints are made on busy days.
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