Investors are increasingly wary of Ola Electric Mobility, India’s premier electric two-wheeler manufacturer. The company’s stock has seen a sharp decline, plummeting to levels that have not been witnessed since its initial public offering (IPO). With shares crashing 56% from their peak of ₹102.50 in December 2024 to the current price of ₹50.77, the last three months have been particularly grim, culminating in a record low of ₹45.35 in the latest trading session.

Ola Electric’s Share Price Challenges

The ongoing downturn in Ola Electric’s stock price has resulted in significant losses for retail investors, who collectively own 51.3% of the company as of the December quarter. The stock is now trading 71% below its one-year high of ₹157.40, achieved in August 2024, and is 33% below the IPO price of ₹76.

Factors Impacting Confidence

Several hurdles are contributing to the decline in Ola Electric’s shares:

• Sluggish Growth in EV Market: The electric two-wheeler market’s slower-than-anticipated growth has affected investor sentiment.
• Market Share Decline: Ola Electric is losing ground in its segment.
• Delays in Product Launches: Homologation issues have postponed the launch of its new motorcycle, further straining investor confidence.
• Profitability Pressures: Increased warranty costs are squeezing profits, making the company’s financial outlook less favorable.

Discrepancies and Regulatory Scrutiny

Ola Electric has faced scrutiny for reported discrepancies in its sales figures compared to actual vehicle registrations. For instance, in February 2025, while the company claimed to have sold over 25,000 units, only about 8,600 registrations were recorded on the government’s Vahan portal. The company also categorized 10,866 e-scooter bookings and 1,395 Roadster X motorcycle bookings as "confirmed orders," despite the fact that many of these models had not yet been delivered or officially launched.

Legal challenges have also emerged, including a recent insolvency petition filed by Rosmerta Digital Services against Ola Electric Technologies over payment defaults, although this was settled after Ola paid ₹267.5 million.

Regulatory Issues Mounting

The company has come under increasing regulatory scrutiny as well. Last year, India’s market regulator issued a warning after Ola made announcements on social media before notifying stock exchanges. Additionally, the Central Consumer Protection Authority issued a notice to Ola regarding alleged violations related to customer rights and misleading advertisements.

Future Outlook: What Analysts Are Saying

Despite expectations that profitability may improve due to cost-cutting strategies, analysts remain cautious about volume growth not meeting market projections.

Technical Analysis: Future Pain for Ola Electric

According to Anshul Jain, Head of Research at Lakshmishree Investment and Securities, Ola Electric has experienced a staggering 71% drop from its IPO peak within just 33 weeks. Notably, the stock has seen a substantial 55.75% decline over the past 18 weeks. While there was a brief uptick in mid-March, the absence of sustained momentum has left the stock vulnerable. Jain warns that if the stock closes below ₹46, it could trigger a further downturn, potentially pushing prices down to the ₹35 range.

In summary, the combination of market pressures, regulatory challenges, and investor sentiment has placed Ola Electric in a precarious position. As investors keep a watchful eye on future developments, the company’s next moves will be crucial in determining its market trajectory.