CCPA sends show-cause notice to Ola Electric over surging consumer complaints
As per reports, the regulator has taken cognisance of thousands of complaints against Ola Electric which are growing by the day.
Bhavish Aggarwal-run Ola Electric’s shares have tumbled nearly 25 per cent from its record peak in the last five trading sessions, leaving investors jittery amid profit booking and broader market volatility.
The stock has nosedived 24.65 per cent from its all-time high value of Rs 157.53 apiece, a level reached on August 20.
On Monday, the shares of the company closed marginally down at Rs 125.30 apiece.
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Ola Electric’s stock made a muted market debut on August 9 but saw a strong buying after the listing. At present, the scrip has been under selling pressure after scaling lifetime high.
According to market analysts, the stock value is inflated and will further correct itself and investors with high-risk appetite should only go for it.
The experts mentioned that the company’s stock is not looking good and can slip further towards Rs 110 level over the near term.
Rising competition in the electric two-wheeler segment is another worry for the company. A latest Jefferies report said that TVS and Bajaj have expanded their portfolios with more affordable electric two-wheelers offering.
The move helped TVS and Bajaj gain between 4 per cent and 7 per cent of the market share, respectively, with TVS now holding 19 per cent and Bajaj 18 per cent market share in the April-June quarter.
Ola Electric’s market share in the electric two-wheeler market slipped from 49 per cent in Q1 FY25 to 33 per cent in August on a month-to-date basis.
Analysts cautioned investors, especially given the company’s ongoing losses and the high volatility in its stock price.
For new investors, it may be wise to wait for a more stable entry point or consider the stock as a long-term play with a high risk-reward ratio, they added.
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