Ola Electric shares surge 5% after reassuring investors on 'strong' sales

Shares of Ola Electric Mobility rallied over 5 per cent on Friday after the company clarified that its sales remain "strong" and attributed the backlog to ongoing negotiations with vendors responsible for vehicle registrations. 

 

Ola Electric stock rose as much as 5.01 per cent during the day to ₹54.3 per share. The stock pared gains to trade 4 per cent higher at ₹53.7 apiece, compared to a 0.32 per cent advance in Nifty 50 as of 9:45 AM. 

 

Shares of the electric vehicle maker have fallen 15 per cent this year, compared to a 1.6 per cent fall in the benchmark Nifty 50. The company's stock currently trades about 30 per cent below it listing price of ₹76 per share. After hitting a life-high soon after its debut, the counter has plunged 65 per cent to trade at the ₹54 mark. Ola Electric currently has a total market capitalisation of ₹23,880.23 crore, down from its peak of nearly ₹65,000 crore. 

 

 

The statement from the electric vehicle manufacturer came after exchanges sought clarification on media reports that the company is facing regulatory scrutiny with the Ministry of Heavy Industries investigating discrepancies in reported sales figures.  

 

According to media reports, Bhavish Aggarwal led-Ola Electric said that it sold 25,000 electric scooters in February 2025. However, data from the government’s Vahan portal shows that only 8,600 vehicles were registered during the same period. As part of the investigation, reports claimed that the Regional Transport Office (RTO) in Maharashtra has carried out inspections at Ola's showrooms across the state. 

 

However, Ola clarified in an exchange filing that these are "false narrative" and the "sales remain strong." Further, said that the temporary backlog in February was due to ongoing negotiations with vendors responsible for vehicle registrations. "This backlog is being rapidly cleared, with daily registrations exceeding 50 per cent of our three-month daily sales average." It also noted that 40 per cent of the February backlog has already been cleared, and the remaining will be fully resolved by the end of March 2025.  

 

Ola Electric is a beneficiary of the FAME II and PM E-DRIVE schemes and its eligibility certificate has been provided by ARAI, a certification and testing agency under the administrative control of the ministry.

 

Ola Electric's stock has taken a novedive as back-to-back negative news weighed on investor sentiments. Earlier this week, Rosmerta Digital Services Limited, an operational creditor of Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, submitted a petition before the National Company Law Tribunal – Bengaluru Bench - alleging that Ola Electric's arm has defaulted in payment towards the services rendered by the creditor. 

 

Apart from Ola Electric insolvency news, reports suggested that transport authorities conducted raids across Ola Electric's showrooms, closing them and seizing vehicles in the absence of trade certificates. Trade certificates are necessary to display, sell, offer test rides, and/or transport unregistered two-wheelers.

 

Amidst this downfall, four of the eight analysts tracking the company have a 'buy' on the stock, two have a 'hold' while another two had a 'sell' call, according to Bloomberg data.