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Tuesday, February 4, 2025

Market: Ola Electric Mobility Shares Tank 5% Today

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Ola Electric Mobility Ltd. saw a significant drop in its stock price on Monday, following the resignation of two key executives—Chief Marketing Officer Anshul Khandelwal and Chief Technology & Product Officer Suvonil Chatterjee—citing personal reasons. The stock plummeted by 4.62%, hitting a low of Rs 85.93, before recovering slightly to Rs 86.74, marking a 7.13% decline over the past month. The resignations raised concerns among investors about the company’s internal stability, amplifying existing market uncertainty.

This decline also comes amid regulatory scrutiny, as Ola Electric received a showcause notice from the Central Consumer Protection Authority (CCPA) earlier this month, seeking more information on how the company handles consumer complaints. These developments have added pressure on the company, especially in a highly competitive EV market.

Despite the setbacks, analysts suggest that investors with a high-risk appetite may consider adding the stock with a one-year investment horizon. Technically, support for the stock is seen at Rs 80, with a target of Rs 100 if it stabilizes. The stock is currently trading below its short-term moving averages, but the 50-day SMA suggests some potential for recovery. Investors should exercise caution due to the ongoing challenges and uncertainties.

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