Ola Electric, led by Bhavish Aggarwal, has seen its stock value plummet by 55% in just a few months, eroding Rs 38,000 crore of investor wealth. The company’s shares, which once reached a high of Rs 157.40, are now trading at approximately Rs 70 per share. This price is not only far from its peak but also below its initial listing price of Rs 76.
The company’s market capitalization, which once touched Rs 69,000 crore, has now fallen to around Rs 31,000 crore, reflecting the steep decline in investor confidence.
Ola Electric Stock Decline
A significant reason for the drop in Ola Electric stock is the rising wave of customer complaints about its electric scooters. Issues range from poor service to problems with the product’s quality.
For instance, Kunwar Pal, a customer from Gurugram, shared that his Ola scooter’s rear tyre jammed, and he discovered the battery was dead, requiring a costly replacement of Rs 30,000. Another customer mentioned repeated issues with broken brake shoes, with repairs failing to resolve the problem.
Many customers have reported problems such as software glitches, battery failures, and jammed tyres, raising concerns about the company’s reliability and long-term product performance.
Financial Losses and Investigation
Ola Electric’s financial struggles have also contributed to its stock decline. The company’s net loss increased by 43%, rising to Rs 495 crore in Q2 FY25 from Rs 347 crore in the previous quarter.
Adding to its troubles, the Central Consumer Protection Authority (CCPA) has launched a probe into Ola Electric over allegations of poor consumer complaint redressal. The investigation, led by the Bureau of Indian Standards (BIS), was initiated after a series of unresolved complaints. The BIS has been tasked with submitting a report within 15 days.
Ola’s Response to Complaints
In its defense, Ola Electric claimed to have resolved 99.1% of the 10,644 complaints registered with the National Consumer Helpline (NCH). However, the company is still facing a show-cause notice from the CCPA for alleged violations of consumer rights.
Ola Electric’s struggles with customer satisfaction and financial performance have severely impacted its stock value and market reputation. The ongoing investigation and rising complaints could further challenge the company’s efforts to regain investor trust.
