The rally followed the launch of two new electric scooter models—the S1 Z and Gig—targeting gig economy workers and cost-conscious consumers in India.
The Bengaluru-based company now has a market capitalisation of Rs 38,885.8 crore (around $4.6 billion).
The stock’s rise was further driven by global brokerage firm Citi initiating coverage on Ola Electric with a ‘Buy’ rating and a target price of Rs 90.
“Our positive stance on Ola —largest E2W player in India with ~38% market share (FY25 YTD)—is predicated on: 1) wide product portfolio, 2) strong R&D focus, 3) significant vertical integration (inc. Li-ion cell manufacturing), and 4) large scale of production; soon to-be-launched motorcycles and E3Ws potential volume boosters,” the Citi report noted.
Citi acknowledged challenges in Ola Electric’s service reputation, stating “We admit service perception has been negative of late, but expect it to subside over the medium term as back-end supply chain catches up with volume growth.”
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Ola Electric’s newly launched models—Gig, Gig+, S1 Z, and S1 Z+—are priced between Rs 39,999 and Rs 64,999 as part of an introductory offer. The scooters aim to compete with players like Yulu Bikes, whose low-speed rental electric bikes are popular among delivery partners in quick commerce and logistics.“India’s Gig economy will be 2x in the next few years with more than 10 Mn workers. These workers unfortunately have to ride poor quality products at a much higher price. Ola Gig will change this,” CEO Bhavish Aggarwal said in a post on X announcing the launch of the scooters.
Ola Electric also introduced the ‘Ola PowerPod,’ a portable battery pack priced at Rs 9,999. The device doubles as an inverter with a maximum output of 500W, capable of powering small household appliances like lights and fans.
During its Q2 earnings call, Aggarwal outlined Ola Electric’s plans to launch 20 new products across two- and three-wheeler categories over the next two years, with at least one new product release each quarter.
The firm, which debuted on the stock market on August 9, has faced growing criticism in recent months over its servicing network and customer complaints, impacting its stock price and market capitalisation. On October 7, Ola Electric’s market valuation dropped below $5 billion for the first time since its listing, ET reported.
The Central Consumer Protection Authority issued a notice to the company over these issues, to which Ola Electric responded on October 21 by stating that it had resolved 99.1% of existing complaints.
Citi’s report flagged potential risks for Ola Electric, including weak EV penetration, intense competition, negative perceptions of product and service quality, technology obsolescence, and sustained net losses.
On Wednesday, Aggarwal met SoftBank founder Masayoshi Son as part of the latter’s ongoing visit to India.
“Always amazing to meet @masason! Such an energising discussion on AI, AGI, Energy and India. We will make the future here in India together,” Aggarwal wrote on X.