Ola Electric’s stock surges: Ola Electric, India’s leading electric two-wheeler company, saw its shares skyrocket by 20 per cent this morning, reaching an all-time high of Rs 133.08 per share. This surge comes on the heels of the company’s bold entry into the electric motorcycle market, marking a strategic expansion of its product lineup.
The company recently unveiled three new electric motorcycle models—Roadster Pro, Roadster, and Roadster X—priced at Rs 74,999, Rs 1,04,999, and Rs 1,99,999, respectively. These new offerings have generated significant buzz among investors, contributing to the stock’s recent rally.
At its annual launch event, Sankalp 2024, held at the Future Factory in Krishnagiri, Tamil Nadu, on August 15, Ola Electric showcased its latest innovations. These include the Bharat 4680 cell, a next-gen battery pack, the Gen-3 platform, and the newest version of its operating system, MoveOS 5. The company also announced plans to integrate these cells into its vehicles by the first quarter of FY26.
Bhavish Aggarwal, Founder and CMD of Ola Electric, emphasised the importance of this new market segment, noting that motorcycles represent two-thirds of India’s two-wheeler market. He expressed confidence that Ola’s entry would accelerate the adoption of electric vehicles (EVs) in this space, building on the company’s success in the electric scooter market.
In July 2024, Ola Electric captured 39 per cent of India’s two-wheeler EV sales, underscoring its strong market position. However, despite a 90 per cent revenue growth in FY24, the company remains unprofitable, reporting a consolidated loss of Rs 347 crore in Q1 FY25, up from Rs 267 crore in the same period last year.
Looking ahead, Ola Electric aims to cut costs by using its own batteries starting next year. The company’s recent price cuts and a positive outlook from HSBC, which initiated coverage with a “buy” rating and a Rs 140 price target, have further fuelled investor optimism, driving the stock’s impressive performance since its IPO.
