Why is Ola Electric Delaying Roadster X Deliveries Again?

Synopsis
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.