Shares of Ola Electric Mobility have faced a significant downturn, with a steep decline of 65% from their all-time highs. This drop comes in the wake of a recent announcement by the company that it laid off 1,000 employees, signaling deeper troubles for the electric two-wheeler manufacturer. Ola Electric’s stock has been under intense scrutiny since its record high in August 2024, with investors questioning its financial stability and long-term prospects.
Stock Performance and Market Struggles
The company’s shares were initially listed on the NSE on August 9, 2024, at ₹75.8 per share. After a subdued debut, the stock quickly gained momentum, almost doubling in value within just seven trading days. On August 20, 2024, Ola Electric’s stock hit a record high of ₹157.4 per share, capturing investor attention and optimism about the company’s potential in the electric vehicle (EV) market. However, in recent weeks, the shares have fallen dramatically, touching a new low of ₹53.6 per share on Tuesday, representing a decline of over 65% from its peak.
When compared to its peers, Ola Electric has significantly underperformed in the market. For instance, TVS Motors has seen a 29% decline from its record highs, while Bajaj Auto’s stock is down 40%. Despite these declines, Ola Electric’s performance has been much more drastic, raising concerns about its financial health and future prospects.
Reasons Behind the Decline
Several key factors contribute to the significant decline in Ola Electric’s stock price, which has left investors wary of its future growth. These include poor financial performance, declining sales, intense competition, and operational inefficiencies. Below is a closer look at these challenges.
Poor Fundamental Performance
Ola Electric has seen a drastic downturn in its financials, despite a reasonable market share in the electric two-wheeler (2W) space. The company’s revenue for the quarter ending December 2024 was ₹1,045 crore, marking a 19% decline year-on-year (YoY) and a 13% quarter-on-quarter (QoQ) decline. While the company has reported strong sales growth in certain periods, it has struggled to convert this growth into operational efficiencies and profits.
In the third quarter of fiscal year 2025 (Q3FY25), Ola Electric posted an operational loss of ₹460 crore. This continued financial struggle led to a net loss of ₹564 crore, compared to a loss of ₹376 crore during the same period in FY24. The company has been unable to turn its sales growth into profitability, further eroding investor confidence.
Consistent Decline in Sales
Despite holding over 25% of the electric two-wheeler market share, Ola Electric has experienced a sharp drop in its vehicle sales. In March 2024, the company sold nearly 50,000 units. However, sales figures have steadily declined since then, with the company selling 41,624 units in July 2024, followed by 24,665 units in September 2024, and just 8,674 units in February 2025. This downward trend in sales casts a bleak outlook for the company’s future growth and raises concerns about its ability to maintain its market share in the highly competitive EV sector.
The sharp sales decline is particularly concerning because it signals that Ola Electric may be losing its appeal to customers despite a strong initial market presence.
Intense Competition in the Electric Vehicle Market
Ola Electric faces fierce competition from established players in the electric two-wheeler segment, such as Bajaj Auto, TVS Motors, Hero MotoCorp, and Ather Energy. These competitors have a larger network of dealers, better after-sales services, and, in many cases, more established brand recognition. As a result, these companies have managed to achieve better sales figures than Ola Electric.
In February 2025, Ola Electric saw a staggering 74% YoY drop in sales, while its competitors posted impressive gains. For instance, Bajaj Auto’s sales grew by 81.8%, Hero MotoCorp saw a 52.4% increase, and TVS Motors recorded a 28% rise in sales. Ather Energy and Greaves Electric also posted strong sales growth, with 29% and 42.7% increases, respectively. In contrast, Ola Electric’s performance in terms of sales volume was comparatively weak, with only 8,674 units sold in February 2025, far behind the combined total of nearly 43,000 units sold by legacy players.
This intense competition presents a significant challenge for Ola Electric, as it struggles to hold on to its market share in a rapidly growing and highly competitive industry.
Governance Issues and Operational Inefficiencies
In addition to its financial struggles and declining sales, Ola Electric has faced several corporate governance challenges. Notably, the company has seen its Chief Technology Officer (CTO) and Chief Marketing Officer (CMO) resign within a year of its listing, raising concerns about internal management issues.
Furthermore, customer satisfaction regarding Ola Electric’s after-sales service has been poor, with many vehicle owners expressing dissatisfaction. This dissatisfaction has contributed to the negative outlook for the company, as poor after-sales service is a key factor that influences customer loyalty and brand reputation.
The recent layoffs of nearly 1,000 employees as part of cost-cutting measures further point to operational inefficiencies within the company. While cost optimization is often necessary in challenging times, such significant workforce reductions suggest that Ola Electric is struggling to achieve operational profitability.
What Lies Ahead for Ola Electric?
Looking forward, Ola Electric plans to expand its reach nationwide through newly opened stores. The company also aims to achieve 50,000 units of monthly sales in order to become EBITDA positive in the coming quarters. However, Ola Electric will continue to face significant challenges, including fierce competition and the need to overcome its operational inefficiencies. Maintaining market share will be a key focus, but the company’s ability to execute on these plans remains uncertain.
With intense competition, poor financial performance, and operational struggles, Ola Electric’s stock will likely remain under pressure unless the company can significantly improve its operations and regain consumer confidence.
