Ola Electric Shareholders Bleed as Stock Nosedives
When Will Ola Electric's Share Fall Come to a Halt? That is the question currently troubling investors who have put their money into the company's stock. Over the past few days, the price of Ola Electric shares has been continuously declining due to various reasons. On June 23, the share reached a new low. On Monday, the company’s shares plunged to ₹43, hitting their 52-week low. As a result, those who purchased the shares at higher prices are now facing significant losses. Not only that, but even those who received shares through the IPO have suffered major losses. That’s because the company came out with an IPO at a price of ₹76, and in August 2024, Ola Electric shares were listed at ₹91. Later, the share price touched a high of ₹157. Compared to the 52-week high, the stock has now declined by nearly 72%. This is the major concern currently unsettling the company’s investors.
On Monday, in the market, 44 lakh Ola Electric shares changed hands at ₹44 through a block deal. Following that, selling pressure increased further, and the stock closed on the BSE with a loss of ₹3 at ₹43.32. Over the past year, the company faced a severe downturn. Mainly, the brand suffered due to numerous complaints from vehicle buyers and the emergence of service-related issues. In addition, the company faced several regulatory challenges. On top of all this, Ola has been encountering intense competition from long-established players in the electric vehicle space. As a result, the company, which once dominated the EV market, began to lose market share. All these factors together have had a major negative impact on Ola’s stock. Though the company’s management claims it will move toward profitability in the current financial year, the shares continue to be under severe pressure.
While several agencies tracking Ola Electric shares suggest that the stock may be a buy at current levels, Kotak Securities has recently stated that the shares could drop further to ₹30. The company is expected to continue facing pressure due to heavy losses, increasing competition, and other challenges. It can be said that even for the shares to return to their IPO price, investors have no choice but to wait patiently in the current market scenario.
