Ola Electric Shares Hit All-Time Low – A Warning Sign or Long-Term Opportunity for Investors
Ola Electric stock crashes 42 percent below IPO price to 43.25 rupees. Explore the promoter's journey, business model, management vision, financial and technical analysis to evaluate what investors should do now.
Introduction – Ola Electric’s Stock Crash – What’s Behind the Decline
Ola Electric Mobility Ltd shares have taken a sharp fall recently, and on 25 June 2025, they were seen trading near their all-time low of 43.25 rupees — a steep drop of over 42 percent from their IPO price of 76 rupees. This continuous decline has raised serious concerns among retail and institutional investors alike.
Once hailed as India’s torchbearer for the EV revolution, is Ola Electric now failing to deliver on its grand promises? In this detailed blog, we dive into Ola Electric’s promoter journey, business model, management outlook, financial health, and technical analysis to help investors decide their next move.
1 Promoter’s Journey – Bhavish Aggarwal, the Visionary Behind Ola
Ola Electric was founded by Bhavish Aggarwal, the same entrepreneur behind the success of Ola Cabs. A graduate from IIT Bombay, Bhavish left his corporate job to launch Ola with the idea of disrupting urban transportation in India.
In 2017, seeing the potential in electric mobility and clean energy, he spun off Ola Electric as a separate venture with a bold vision – to make India self-reliant in EV manufacturing and reduce dependency on imported oil and batteries. His ambition was not just to sell scooters, but to build an entire EV ecosystem from scratch.
2 Business Model – More Than Just Electric Scooters
Ola Electric’s business model rests on three key verticals
An Electric Two-Wheeler Manufacturing – S1 Series
The S1 Pro and S1 Air models saw significant buzz upon launch due to design and tech features. However, issues such as delivery delays, service challenges, and quality complaints hampered customer satisfaction.
B. In-House Battery Production – Gigafactory
Ola is investing heavily in its Gigafactory in Tamil Nadu to produce lithium-ion battery cells locally. This is intended to reduce costs and reliance on Chinese imports. However, the factory is in its early stages, and returns are still years away.
C Software and Connected Mobility
Ola scooters are equipped with app-based connectivity, navigation, and smart dashboards. The company aims to position itself as a tech-first mobility brand, not just an automaker.
3 Management Outlook – Ambitions versus Execution
Bhavish Aggarwal has made bold promises – from building a 100 GWh battery plant to becoming India’s top EV brand by 2026. His vision is impressive, but his execution has been questioned repeatedly, due to
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Weak service and repair network
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Frequent product updates are upsetting early adopters
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Reported incidents of battery fires
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Missed delivery deadlines
While the vision is long-term, investors seek execution in the short and medium term, which is lacking currently.
4 Financials – What Do the Fundamentals Say
Snapshot of Ola Electric’s recent financials
Metric – Value for FY24 Q4
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Market Capitalization – 33500 crore rupees
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Revenue – 2782 crore rupees
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Net Loss – 1472 crore rupees
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EPS – Negative
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Book Value – 18.3 rupees
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Price to Book Ratio – 2.3 times
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Debt – Around 1100 crore rupees
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Promoter Holding – 40.7 percent
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FII Holding – 10.6 percent
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Public Holding – 47.2 percent
Key Observations
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The company remains loss-making with no clear profitability timeline
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Promoter holding is relatively low
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High public holding makes it vulnerable to panic selling
5 Technical Analysis – What the Charts Say
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IPO Price – 76 rupees
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Listing Price – 87 rupees
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Current Price on 25 June 2025 – 43.25 rupees
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52 Week High – 91 rupees
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52 Week Low – 42.75 rupees
Indicators
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Relative Strength Index 28, indicating an oversold zone
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MACD – Bearish crossover
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50 Day Moving Average – 59 rupees
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200 Day Moving Average – 67 rupees
Technical Trend
The stock is forming lower lows. If it falls below 42 rupees and sustains, a drop to 35–38 rupees is possible.
If it bounces above 46–48 rupees, a short-term rally to 55 rupees is likely, but sentiment remains weak.
6 What Should Investors Do Now
Short-Term Investors
If you entered during the IPO or shortly after, you are likely facing losses. Avoid panic selling. However, set a stop-loss around 42 rupees if the price falls further.
Long-Term Investors
If you believe in the EV growth story and Ola’s vision, this may be a phase to review rather than exit. Avoid averaging until the stock stabilizes above 50 rupees and shows improved financials.
New Investors
Avoid entering just because the price is low. Falling prices do not always mean a value opportunity. Wait for a turnaround in quarterly results and a clearer execution strategy.
7 Opportunities and Risks
Opportunities
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EV sector is expected to grow rapidly in India
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Government support through incentives and infrastructure
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If the battery plant becomes operational, costs will reduce
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Tech-driven features can differentiate Ola in the long run
Risks
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Strong competition from TVS, Ather, Hero, and Bajaj
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Poor customer support and delivery execution
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Negative brand perception due to early issues
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High volatility may discourage institutional investors
Conclusion – Ola Electric Must Dream Big but Execute Better
Ola Electric has a bold and futuristic vision for India’s EV transformation. But investors need more than vision – they need financial stability, execution clarity, and trust in leadership.
If you are already invested, do not rush to exit. Monitor the situation, review technicals, and quarterly results.
If you are a new investor, wait for the right entry point when signs of improvement are evident.
Author’s Note
This blog is written to present a factual, balanced, and investor-friendly analysis of Ola Electric’s performance. It is not investment advice. Always consult your financial advisor before making investment decisions. The electric vehicle industry holds long-term promise, but only for those who invest with patience, clarity, and data-driven discipline.
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