NEW DELHI: Shares of Ola Electric Mobility dropped by up to 10 per cent on Monday before settling 8 per cent lower, as reports surfaced about service quality issues concerning its electric scooters and a public spat involving the company’s CEO on social media.
On the BSE, Ola Electric shares fell 8.31 per cent to close at Rs90.82 per share, marking the third consecutive day of losses. During the session, the stock plummeted by as much as 9.43 per cent to hit a low of Rs89.71.
Similarly, on the National Stock Exchange (NSE), Ola Electric Mobility shares declined by 8.38 per cent, ending the day at Rs90.75 per share, after hitting a session low of Rs89.55, down 9.59 per cent.
In terms of volume, approximately 1.15 crore equity shares were traded on the BSE, while 9 crore shares changed hands on the NSE throughout the day.
Sensex drops 638.45 points
The broader market also saw declines, with the 30-share BSE Sensex dropping 638.45 points, or 0.78 per cent, to settle at 81,050, while the NSE Nifty fell by 218.85 points, or 0.87 per cent, to close at 24,795.75.
Ola Electric’s share slide followed a heated exchange on social media platform X (formerly Twitter) between Ola founder Bhavish Aggarwal and stand-up comedian Kunal Kamra.
The controversy began when Kamra responded to a post by Aggarwal showcasing Ola’s gigafactory, by posting a picture of several Ola Electric scooters seemingly waiting for servicing.
Spat triggers criticism
Aggarwal retaliated by calling Kamra a “failed stand-up comic” and accused him of making a “paid tweet,” while claiming that Ola Electric is rapidly expanding its service network and will soon clear the backlogs. The spat triggered further criticism from Ola Electric customers, who expressed dissatisfaction with the company’s after-sales service, urging Aggarwal to address their concerns.
Ola Electric was listed on the stock exchanges in August this year at an issue price of Rs 76. Following its debut, the stock surged to a post-listing high of Rs 157.4, more than doubling its issue price. However, since reaching that peak, the stock has fallen by 43 per cent.
The company has also been losing market share to traditional auto players like Bajaj Auto and TVS Motor, as they intensify their efforts in the electric vehicle (EV) space.
