Ola Electric Hits Fresh All-Time Low Amid Broader Market Slump

Shares of Ola Electric slid 6% in early trade today to hit a record low at INR 43.20 apiece on the BSE on the back of a bleeding overall market.

At 11:33 AM, about 19.22 Lakh traded hands today and the market capitalisation of the Bhavish Aggarwal-led company stood at $2.3 Bn, as per Ola Electric’s last close at INR 46.05.

The losing streak for Ola Electric shares continues. The company’s stock fell 1.9% during last week, as per Inc42’s new-age tech stock coverage.

The slump in the share price comes at a time when Ola Electric is reeling with loss in market share and a pressured bottomline.

While two-wheeler EV registrations did see a 16% increase in April, jumping to 23,557 from 19,709 in the previous month, this growth is not indicative of overall two-wheeler EV sales. In fact, the overall market for electric two-wheelers in India experienced a 30% month-over-month decline in April. This dip is reflected in the sales figures of major players like Ola Electric, which saw a decline in registrations.

The slump in the shares of Ola Electric also comes on the back of the overall bleeding stock market. The Sensex hit an intraday low at 81,476.76 points falling 0.27% from its last close at 81,704.07 points on Friday (On June 20).

The sluggish market sentiments is due to the tensions between Iran and the US as the American forces launched an air strike into Iran territories targeting their nuclear sites. Following this, Iran has threatened to block the Strait of Hormuz, a vital shipping lane for global oil. Nearly 20% of the world’s oil consumption passes through the strait.

(The story will be updated soon)

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