By Admin 
Ola Electric Shares: The shares of two-wheeler electric vehicle manufacturing company Ola Electric Mobility have been witnessing a huge decline for some time. The situation is that the share has fallen from its all-time high of Rs 157.40 to Rs 25. That means a decline of about 84 percent is being seen.
After the IPO in the year 2024, the shares had debuted at the issue price of Rs 76. After this it touched its all-time high level. Then there is a continuous decline in the shares. As a result of the fall in shares, investors who had placed bets on them have suffered a loss of Rs 57,000 crore. Instead of rising, the share prices are moving in the opposite direction. The company is currently trading about 70 percent below its issue price.
Reasons for the fall in Ola Electric shares
- The company’s market share in the electric vehicle segment is continuously decreasing. Where at the end of 2024, the company’s market share has fallen from 35 percent to less than 6 percent. Now it is only around 4.2 percent.
- Repeated complaints regarding Ola Electric vehicles have also reduced customer trust in the brand. People are also worried about its after sale service. Questions have also been raised regarding the quality of vehicles etc. In this sequence, the company is facing competition from big companies like Bajaj Auto, Hero MotoCorp, TVS Motor.
- The company has also decided to reduce the number of its retail stores, which is expected to come down to 550 from the earlier 4000 stores. This means that somewhere the company is shrinking rapidly instead of expanding. This has shaken the confidence of investors.
Brokerage trust reduced
Considering all these things, everyone from Citi to Kotak Securities and MK Global have given ‘Sell’ rating to the shares of Ola Electric. Citi has reduced its target price to Rs 27 and MK to Rs 20.
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