As Ola Electric expands its dealership network, challenges are mounting for CEO Bhavish Aggarwal. The company’s share price recently took a hit, dropping 4.4% during the day to settle at Rs 54.03. This decline follows scrutiny from authorities regarding the absence of trade certificates for its dealerships, raising concerns about the company’s compliance with regulations.

Regulatory Scrutiny and Dealership Raids

Ola Electric faced significant backlash as transport officials conducted raids across various states. These investigations led to the closure of several showrooms, the seizure of vehicles, and the issuance of show-cause notices. The catalyst for these actions was the alleged failure to secure necessary trade certificates for its dealership operations, which has raised red flags about the company’s practices.

Recent Layoffs and Workforce Challenges

In a surprising turn of events, Ola Electric reportedly laid off around 1,000 employees in a bid to mitigate financial losses. This decision has added to the growing concerns about the company’s operational stability. For a deeper dive into this issue, you can explore our detailed article on the layoffs.

Sales Performance and Market Goals

Despite ambitious targets, Ola Electric’s sales figures have not lived up to expectations. In February 2025, the company announced sales of over 25,000 units, capturing a mere 28% of the market share. This performance falls significantly short of the 50,000-unit monthly goal set by Aggarwal earlier this year, highlighting ongoing difficulties in maintaining a competitive edge in a challenging market.

Financial Results for Q3 FY25

The company’s financial health appears to be deteriorating, as evidenced by a net loss of Rs 564 crore for the third quarter of FY25. This marks an increase from the Rs 376 crore loss reported during the same period the previous year. When compared to the preceding quarter, Ola Electric’s financial situation worsened, with losses escalating from Rs 495 crore. Additionally, revenue from operations for Q3 FY25 declined by 19.36%, dropping to Rs 1,045 crore from Rs 1,296 crore a year ago.

Stock Performance and Investor Sentiment

The stock market response to Ola Electric’s challenges has been stark. Over the past five trading days, the share price has decreased by 2.4%. In the last month alone, investors have witnessed a staggering 20% decline, with overall losses exceeding 50% in the past six months. Since its debut in August 2024, the stock has plummeted by over 40%, raising concerns among shareholders about the company’s long-term viability.

Ola Electric’s journey is fraught with obstacles, but the company’s ability to navigate these challenges will be critical for its future success. As the situation unfolds, stakeholders will be watching closely to see how the company adapts to the regulatory landscape and market demands.