Why Did Ola Electric Stock Plummet 80% From Its Post-Listing High?
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Synopsis
Ola Electric Mobility faces a significant challenge as its stock plunges nearly 80% from its post-listing peak, raising concerns among investors. With heavy selling and revised financial forecasts, the future remains uncertain for the company. Will it recover or continue on this downward trend?
Key Takeaways
- Ola Electric stock has dropped 80% from its peak.
- Current market cap is below Rs 15,000 crore.
- Heavy selling pressure observed in recent sessions.
- Market share stands at 6.7% as of December.
- Company revised revenue forecast downwards significantly.
Mumbai, Dec 8 (NationPress) The shares of Ola Electric Mobility have experienced a staggering decline of nearly 80 percent from their post-listing high, continuing their downward trend for the seventh consecutive session.
Intense selling, poor market outlook, and technical issues have driven the stock significantly below its IPO price, raising alarms among investors.
It has also fallen over 50 percent from its initial public offering price of Rs 76 per share.
At the end of the trading day, the stock was down by Rs 1.09 or 3.07 percent, closing at Rs 34.41. During intra-day trading, the shares of Ola Electric Mobility Limited dropped by 4 percent, extending their losing streak for seven consecutive sessions.
Out of the last 25 trading sessions, the stock has only seen a rise in five, indicating ongoing selling pressure.
The company's market capitalization has fallen below Rs 15,000 crore, a stark contrast to over Rs 65,000 crore when the stock reached its peak post-listing.
Trading activity was notably high on Monday, with more than 6 crore shares changing hands, significantly higher than the stock's average trading volume of 1.6 crore shares over the past 20 days.
Analysts have pointed out that the stock has faced pressure since early November, breaking below key moving averages and remaining under them since.
Market share statistics also raise concerns; recent VAHAN data indicates that Ola Electric's market share was at 6.7 percent at the beginning of December.
In a recent exchange filing, the company announced the commencement of mass deliveries for its 4680 Bharat Cell-powered vehicles, which are designed to enhance range, performance, and safety.
Nonetheless, the company’s financial projections have dampened market sentiment. By the end of the second quarter, Ola Electric revised its full-year revenue forecast downward, now anticipating between Rs 3,000 crore and Rs 3,200 crore, a significant drop from the previous estimate of Rs 4,200 crore to Rs 4,700 crore.
Point of View
I observe that Ola Electric's stock decline reflects broader trends in the market. The drastic fall raises questions about investor confidence and the company's future strategies. It's crucial for stakeholders to stay informed and consider the implications of this shift in market dynamics.
NationPress
08/12/2025
Frequently Asked Questions
What caused the decline in Ola Electric's stock?
The stock's decline can be attributed to heavy selling, poor market guidance, and technical breakdowns that have resulted in a significant drop from its IPO price.
How much has Ola Electric's stock fallen since its peak?
Ola Electric's stock has fallen nearly 80% from its post-listing peak and more than 50% from its IPO price of Rs 76.
What is the current market capitalization of Ola Electric?
Ola Electric's market capitalization has fallen below Rs 15,000 crore, down from over Rs 65,000 crore at its peak.
What are the latest developments from Ola Electric?
Ola Electric has commenced mass deliveries of its 4680 Bharat Cell-powered vehicles, which promise enhanced range and performance.
What is the revised revenue guidance for Ola Electric?
Ola Electric has revised its full-year revenue guidance downward to between Rs 3,000 crore and Rs 3,200 crore.
