Why is Ola Electric Delaying Roadster X Deliveries Again?
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Synopsis
Ola Electric's Roadster X delivery has faced another setback, with the new delivery date set for May 2025. This is the second delay in two months, raising questions about the company's operational capabilities and regulatory scrutiny. As investigations by SEBI unfold, the electric vehicle market watches closely. What does this mean for the brand and its customers?
Key Takeaways
- Delivery of Roadster X postponed to May 2025.
- Second delay in two months raises concerns.
- SEBI investigation into insider trading.
- Significant drop in share prices over the last six months.
- Transparency is crucial for consumer trust.
New Delhi, May 2 (NationPress) Ola Electric has once again postponed the delivery of its Roadster X motorcycle, marking the second delay within two months. In a notice to the stock exchange, the company announced that deliveries will now commence in May 2025. Previously, they had indicated April as the delivery month after failing to meet an initial mid-March target.
The Bengaluru-based electric vehicle maker, headed by billionaire Bhavish Aggarwal, unveiled the Roadster X on February 5.
However, reports surfaced indicating that the vehicle had not yet completed homologation, a crucial regulatory requirement, just two weeks ahead of the original delivery date.
On April 11, Ola Electric stated that the first batch of Roadster X motorcycles had rolled off the production line at its Tamil Nadu Futurefactory and promised that deliveries would start soon.
With May now being the new target, customers are still anticipating their orders. Despite the setbacks, Ola Electric has already incorporated bookings for the Roadster X into its sales figures.
A letter dated March 21 indicated that the company had added 1,395 bookings of the motorcycle to its February sales data, even though the vehicles were not yet available for consumers.
This action has attracted scrutiny from regulatory agencies. NDTV Profit reported on Friday that India's market regulator, SEBI, is investigating Ola Electric for potential insider trading and questionable related-party transactions.
SEBI is also examining trading activities from October to December 2024, along with discrepancies in sales data and other financial matters.
In response, Ola Electric issued a clarification in a stock exchange filing, asserting that the trades mentioned were standard transactions involving shares obtained through exercising ESOPs and not through open market purchases.
"The trades referred were standard transactions involving shares obtained through exercising these ESOPs and not through open market purchases," the company stated in its filing.
On Friday, Ola Electric’s stock closed at Rs 48.59 on the Bombay Stock Exchange (BSE), reflecting a decrease of 0.27 percent.
Data from BSE shows that the shares of the electric two-wheeler manufacturer have fallen by over 41 percent over the past six months.
Year-to-date (YTD), the shares have plummeted by more than 43.5 percent, and in the last three months, they have dropped by 34.59 percent.
Point of View
I believe Ola Electric's repeated delays in delivering the Roadster X not only impact customer trust but also reflect on the broader challenges facing the electric vehicle sector in India. Transparency and accountability are essential for sustaining consumer confidence and ensuring the industry's growth.
NationPress
30/06/2025
Frequently Asked Questions
What caused the delay in Roadster X deliveries?
The delay is attributed to the vehicle not completing homologation, a necessary regulatory process, before the original delivery schedule.
When will the Roadster X deliveries start?
Deliveries are now expected to commence in May 2025.
What investigations is Ola Electric facing?
Ola Electric is under investigation by SEBI for potential insider trading and discrepancies in sales data.
How have Ola Electric's shares performed recently?
Ola Electric's shares have dropped over 43.5% year-to-date and declined by more than 41% in the last six months.
What is the significance of the ESOPs mentioned?
The ESOPs refer to employee stock ownership plans, and Ola Electric clarified that recent trades involved shares acquired through these plans.
