New Delhi: Ola Electric Mobility shares dropped sharply this morning, falling by over 8 per cent and now down 43 per cent from their peak after listing. This marks the third consecutive session of decline, as social media continues to be flooded with complaints about the company’s flagship electric scooters, leaving both customers and investors concerned.
Ola Electric’s recent stock plunge comes amid rising controversy involving CEO Bhavish Aggarwal and a social media dispute. The company went public in August with an issue price of Rs 76 and saw its stock more than double to Rs 157.4 shortly after listing. However, the stock has now dropped by 43%, as the company has experienced a significant decline in market share since the beginning of this financial year.
Ola Electric has been losing ground to competitors Bajaj Auto and TVS Motor, both of which are making strong moves in the electric vehicle market. By September, Bajaj and TVS held a combined market share of around 20 per cent. In response, Ola Electric launched a “BOSS” sale, offering festive discounts of up to Rs 40,000 along with introducing its affordable S1 X scooter range, starting at Rs 49,999.
Ola founder Bhavish Aggarwal recently found himself in a social media spat with comedian Kunal Kamra, who criticized the company’s service. Kamra responded to a tweet from Aggarwal, which featured a picture of the Ola Gigafactory, urging people with issues related to Ola Electric to reply to his tweet. In response, Aggarwal called Kamra a “failed standup comic” and claimed his tweet was “paid,” while assuring that Ola Electric is quickly expanding its service network and will clear all backlogs “soon.”
