The difficulties for Bhavish Aggarwal seem to be growing as he expands stores. Ola Electric’s share price plunged 4.4% intra-day to Rs 54.03. This is after the company came under scrutiny over reportedly not having a trade certificate for dealerships.
Ola Electric’s dealership stores were raided by transport authorities across different states, showrooms were closed, vehicles were seized, and show-cause notices were sent. All these actions came for allegedly not having trade certificates for dealership stores.
Just a few days back OLA Electric was caught off guard after news reports suggested that the company has fired around 1,000 employees. You can read more about this issue in the below article.
Falling short of commitments
In February 2025, Ola Electric announced that it had sold more than 25,000 units, achieving a 28% share of the market—well short of the 50,000-unit monthly goal established by CEO Bhavish Aggarwal in an earnings call earlier this year. The sales figures, which fell short of expectations, highlight the company’s persistent challenges in achieving stability within a fiercely competitive market.
OLA Electric’s performance in Q3
The company posted a net loss of Rs 564 crore for Q3 FY25, widening from Rs 376 crore reported in the same period a year ago. Sequentially, it reported a net loss of Rs 495 crore. Its revenue from operations in the third quarter of FY25 dropped 19.36% to Rs 1,045 crore, compared to Rs 1,296 crore in the same period last year.
OLA Electric Vs Nifty 50
The share price of OLA Electric has fallen 2.4% in the past five trading days. The stock has wiped out 20% in the last one month and more than 50% of investors’ wealth in the previous six months. It has declined over 40% since its listing in August, 2024.