Ola Electric’s stock witnessed an impressive 6% increase after the company firmly rejected claims regarding a significant decline in sales for February 2025. The firm labeled these allegations as a "false narrative," explaining that the perceived slowdown was merely a result of ongoing vendor discussions affecting registration processes. Ola Electric reassured investors that its sales figures remain strong and are being effectively managed.

Strong Sales Amidst Vendor Discussions

According to the latest exchange filing, Ola Electric has reported that its daily registrations have consistently exceeded 50% of the average sales recorded over the past three months. Notably, the company has already addressed 40% of the backlog from February and is on track to resolve the remaining issues by the end of March 2025.

• Key Highlights:
  • Daily registrations exceed 50% of average sales.
  • 40% of February’s backlog has been resolved.
  • Complete resolution of the backlog is expected by March 31, 2025.

This reassurance from Ola Electric comes in light of increased inquiries from regulatory bodies. The company confirmed it received information requests from the Ministry of Heavy Industries on March 11 and the Ministry of Road Transport and Highways on March 18. Additionally, four states have raised questions regarding trade certificates for some of its outlets.

Addressing Regulatory Scrutiny

The inquiries are specifically focused on discrepancies between vehicle registrations on the VAHAN portal and the sales data reported in Ola Electric’s regulatory filing dated February 28, 2025. The company is actively working to provide the necessary clarifications.

Ola Electric explained, “Our challenges began after we ended contracts with two nationwide vendors responsible for our registration process, aimed at enhancing operational efficiency and profitability. Unfortunately, this move has led to confusion and unwarranted scrutiny. Our primary goal is to clear the backlog promptly while maintaining transparency for our customers.”

Current Stock Performance

As of today, Ola Electric shares opened at ₹51.78 on the BSE, peaking at an intraday high of ₹55.35 and dipping to a low of ₹51.35. Anshul Jain, who leads research at Lakshmishree Investment and Securities, noted a significant uptick in trading volume, exceeding 500% above the 50-day average. The stock is currently testing the 20-day EMA level at ₹55; a breakthrough here could propel it towards the 50-day EMA at ₹64.

• Stock Insights:
  • Current price movement suggests a potential breakout above ₹55.
  • Long-term outlook appears weak; potential for further declines after the current rally subsides.

Jain cautioned that while the recent surge is encouraging, it may not signify a lasting trend reversal, suggesting that investors should consider selling on strength rather than pursuing long-term positions.

For those following the electric vehicle market, Ola Electric’s developments are critical in understanding both the operational challenges and the market dynamics that influence stock performance.