Ola Electric Share Price Plunges Nearly 8% Following Sharp Rally
Ola Electric Shares Decline Sharply Following Steep Rally
Ola Electric Mobility shares tumbled nearly 8 percent in Tuesday's trade, as investors likely booked profits following a steep rally in recent sessions. The stock was trading at Rs 37.7 in late morning trade, down 7.8 percent.
The correction comes after a near-vertical run-up in the stock, with the pace of gains indicating short-term momentum-driven buying, which appears to have reversed as traders locked in gains at higher levels. The recent rally in Ola Electric shares was driven by a series of positive developments and improving operational momentum.
A key trigger was the company's announcement of readiness of its in-house developed Lithium Iron Phosphate (LFP) cell. The 46100 format LFP cell, which is larger than the current NMC 4680 Bharat Cell, is expected to improve scale, cost efficiency, and applicability across mobility and energy storage solutions. The company said these cells will begin to be integrated into its two-wheelers from the next quarter.
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| Company | Recent Gain (Past 7 Sessions) | Recent Gain (Past 3 Sessions) |
|---|---|---|
| Ola Electric | 79% | 42% |
| Nifty 50 |
The development is also significant in the context of Ola Electric's broader push towards vertical integration and localisation of battery technology, which remains a critical cost component in electric vehicles. In addition, the company secured PLI certification earlier this month for its Roadster X+ (4.5 kWh) motorcycle, marking a key milestone for its upcoming product pipeline.
Operationally, Ola Electric also reported a recovery in business performance. Daily orders crossed 1,000 units in the last week of March, while registrations rose over 150 percent month-on-month to 10,117 units from 3,973 units in February, signalling a rebound in demand after a softer phase.
However, the stock remains under pressure on a longer-term basis. Even after the recent rally, shares are still down about 24.6 percent over the past one year, underperforming the Nifty 50, which has gained around 1.8 percent during the same period.
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Investor Takeaway
Investors should be cautious of short-term market volatility and consider booking profits after sharp rallies.
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