Ola Electric Stock Crumbles to Record Low, Wiping Out IPO Gains

Shares of Ola Electric Mobility Ltd plunged to an all-time low on December 5, 2025, trading as low as Rs 34.80 per share—less than half the Rs 76 issue price at which the electric vehicle maker debuted in August 2024—amid persistent operational woes and eroding market share. The stock was down 2.16 per cent at Rs 35.80 as of 10:35 a.m., following a close of Rs 36.12 the previous day, reflecting a year-to-date decline of 58.71 per cent and a 64.63 per cent drop from its 52-week high. Trading volume surged to 15.78 times the 30-day average, signalling heightened investor anxiety despite a robust performance in the broader Nifty Auto index over the past year.

Ola Electric's rapid post-IPO slide has been fuelled by a sharp drop in retail sales, pushing the company down the electric two-wheeler market rankings as rivals like TVS Motor, Bajaj Auto, and Ather Energy capitalised on its vulnerabilities to gain ground. Once a dominant player with aggressive expansion, Ola has struggled with recurring customer complaints over service backlogs and spare parts shortages, eroding consumer trust and investor confidence. The company's internal response includes deploying a dedicated task force to slash wait times, with founder Bhavish Aggarwal personally overseeing on-ground efforts, as highlighted in his social media updates and confirmed by sources close to the matter.

Financially, Ola Electric continues to navigate the high costs of scaling in India's nascent EV sector, where subsidies and incentives have not fully offset the impact of slowing demand and supply chain hiccups. The firm's aggressive pricing strategy, which initially drove market penetration, now appears to be a double-edged sword, contributing to margin pressures amid intensified competition. While the company reported strong initial deliveries post-listing, recent quarterly figures have shown softening volumes, underscoring the challenges of transitioning from hype to sustainable profitability in a market projected to grow exponentially but marked by volatility.

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Analysts remain divided on Ola's trajectory, with Bloomberg data indicating three 'buy' ratings, one 'hold', and four 'sell' among eight tracking the stock, alongside an average 12-month price target suggesting a potential 29.1 per cent upside. As the EV landscape evolves with government pushes for localisation and greener mobility, Ola's ability to resolve service bottlenecks and reclaim lost share will be critical. The stock's freefall serves as a cautionary tale for high-growth listings, highlighting the perils of execution risks in India's burgeoning electric mobility space.

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