Why are Investors Losing Faith in Ola Electric Mobility? Company Loses 43 Percent Since August, Netizen Says ‘..Help Clients Not Your Ego..’

For the third day in a row, Ola Electric's stock is down 8%. The company's market share is declining in the face of increased competition, and the stock has dropped 43% from its post-listing high.

Ola Electric Mobility Share Price

Ola Electric Mobility Share Price: Shares of Ola Electric Mobility Ltd. fell 8% on Monday, after two successive sessions of decline. Ever since it made its market debut at the issue price of ₹76 in August last year, the stock has been depreciating. It had almost touched ₹157.4 just some days after listing. But that high came with a price: the stock has yielded and plummeted 43% in the last few months. And investors are now worried more.

Bajaj Auto and TVS Motor Expand EV Footprint

One of the critical reasons that have crippled Ola Electric is the dwindling market share in electric vehicles. Ola Electric’s market share sagged from 52% in April 2024 to 27% in September 2024, according to VAHAN data. In contrast, heritage automobile players Bajaj Auto and TVS Motor have gained momentum. The two now hold nearly 20% market share each, while around April this year, the two had around 12% combined. Established players are on an expansion spree about their presence in the electric vehicle space while dislodging Ola Electric from its monopoly.

Kunal Kamra’s Tweet Triggers Firestorm of Complaints Against Ola Electric

Ola Electric has gone to every extent to push sales by creating a “BOSS Sale” through which it offered festive discounts up to ₹40,000 and the S1 X scooter range starting at ₹49,999. These sales may bring in more customers but will not work enough to redeem the confidence of investors as the stock keeps sliding.

Service quality issues added woes to Ola Electric. Caught in the social media storm, was company founder Bhavish Aggarwal as comedian Kunal Kamra criticized its performance in a single tweet that quickly snowballed into a war of words with masses of angry customers and even market participants pouring in. A major concern, of course, is the service quality issues at Ola Electric, with brokerage firm HSBC flagging these in a note released on September 26. Despite issuing a “buy” recommendation on the stock with a price target of ₹ 140, HSBC emphasizes that service improvements are paramount to the company because its electric motorcycles are set to launch soon.

Investors Voices Discontent Over Leadership Decisions

That has also seen the Ola Electric Mobility Share Price crash at ₹90.76-near its IPO price of ₹76. The sharp fall has raised outrage among investors, who many feel have been let down by the company’s leadership. Frustrated investor Ganeshan Iyer posted a tweet to express his disappointment saying he sold his Ola Electric shares at a loss of Rs 40,000. Describing Bhavish Aggarwal as a “toxic person” with no hope for a company led by him.

Customer Satisfaction Takes Center Stage Amidst Falling Share Price

Another angry Twitter user, Deepika Narayan Bhardwaj, let her anger at Aggarwal. She said “Money can not buy customer satisfaction @bhash Maybe focus on that. Absolutely crass tweet. Invest more in helping clients than your EGO.” Bhardwaj was expressing the growing concerns around dissatisfaction and perceived arrogance of the company’s leadership.

It was once in a pretty strong market position but, over time has slipped into fierce competition and growing customer dissatisfaction; that runs as a reminder of the test in maintaining the market leadership in such an ever-changing sector. The IPO received a very good response, with the ₹6,145 crore issue overshooting 4.4 times, but it is the struggles that are taking place currently that challenge its prospects of meeting the expectations of investors and customers going forward.

The competition would, once again, increase due to more and more EVs coming into the market, and Ola Electric, to not only increase its product range but also its service quality to gain the trust of more customers. What will decide the journey in that competitive landscape is the capacity of the company in the future to balance growth with customer satisfaction. For now, investors remain in fear as the stock remains on a downward spiral and await any positive signal that the company might give to stabilize its performance.

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