Author: Aditya Pareek | EQMint | Market news
Ola Electric’s stock has been on a steep downward spiral throughout 2025, crashing more than 60% from earlier highs and touching fresh all-time lows. The fall has not only stunned early investors but has also triggered concerns about the company’s long-term strategy and competitiveness in India’s increasingly crowded electric vehicle market.
The shares recently dropped below the ₹36 level, extending weeks of selling pressure. Since its listing, the stock has shed more than half its value, and compared to peak levels in 2024, the slump exceeds 60%. What began as market caution has now turned into aggressive exit sentiment as confidence erodes.
A Dramatic Decline From EV Poster Boy to Market Caution
When Ola Electric debuted, it was celebrated as the flagbearer for India’s electric mobility revolution. The company’s aggressive market entry, bold pricing, and strong consumer response triggered optimism among investors and analysts alike. However, 2025 has brought a sharp reversal of sentiment.
The stock has now fallen to its lowest levels since listing, with sustained weakness over consecutive trading sessions. Technical indicators show bearish trends with the stock trading well below key support levels. Market watchers note that short-lived recovery attempts have failed to break resistance, indicating persistent selling pressure.
Why the Stock Is Crashing — Key Factors Behind the Slide
1. Loss of Market Share
Ola Electric dominated registrations in the EV two-wheeler segment in its early run. However, 2025 saw a sharp decline. Rivals such as TVS Motor, Ather Energy, and Bajaj Auto have eaten into Ola’s share. TVS has emerged as a strong category leader, while Ola slipped to fourth position in monthly sales in multiple months of 2025.
Weak volumes directly impact margins, visibility, and investor confidence. With registrations dropping, it becomes harder for the company to justify capacity, spending, and earlier growth projections.
2. Shrinking Demand and Sales Pressure
One of the biggest red flags has been slowing demand. Monthly sales have fallen significantly as 2025 progressed. New launches from competitors, supply chain improvements across the industry, and broader affordability-driven buying patterns have dented Ola’s growth strategy.
Demand stagnation has also made investors question whether Ola’s aggressive early scaling was sustainable.
3. Financial Stress and Weak Quarter Performance
In recent reporting periods, Ola Electric posted narrowing losses but declining revenue. While cost-cutting helped show improved EBITDA, investors are wary of the fact that shrinking sales and weaker revenues can outweigh operational improvements.
Profitability claims don’t carry conviction when top-line performance drops and market share weakens.
4. Negative Sentiment Piling Up
Technical charts show persistent weakness. Investor sentiment has turned decisively bearish. For a listed company, sentiment-driven selling can push the stock far below intrinsic value — especially when earnings visibility is unclear.
With media headlines consistently highlighting decline, many retail investors have reduced exposure, fearing prolonged stagnation.
What Ola Electric Is Doing to Fight Back
The company has taken several steps to counter the downturn and shift its narrative from “volume decline” to “long-term stability.”
Shift Toward Margin Discipline
Instead of chasing high-volume growth, Ola Electric is focusing on stabilizing margins. This includes cost optimization and efficiency improvements.
Push into Battery Energy Storage
The company has announced its entry into battery energy solutions, a space with strong long-term potential. If executed well, this could reduce dependence on two-wheeler sales.
Development of 4680 Bharat Cell Technology
Ola’s in-house battery cell strategy could reduce costs and improve product economics. However, commercialization at scale remains a challenge.
Product Portfolio Refresh
Management aims to strengthen the product mix and offer models with stronger demand visibility.
These steps may help, but analysts remain cautious because execution timelines are long, and competitive pressure is immediate.
The Big Question: Can Ola Recover?
At this stage, recovery depends on three crucial factors:
- Stabilizing Demand:
Ola must stop losing market share and regain sales momentum. - Executing New Business Lines:
Battery cell manufacturing and storage technology must translate into meaningful revenue. - Investor Communication & Confidence:
If quarterly earnings continue to show declining revenue, sentiment will remain negative regardless of strategic announcements.
Until clear improvement appears, the market is likely to remain skeptical.
Conclusion: A Tough Road Ahead
Ola Electric’s rapid fall has turned it from a growth darling into a cautionary tale for the EV market. The company still has technological strengths, a recognizable brand, and ambitious long-term goals — but the immediate challenge is survival through a phase of shrinking sales, intense competition, and eroding investor trust.
The next few quarters will be critical. Ola needs clear demand upticks, improved revenue visibility, and proof that its diversification into energy storage and battery manufacturing is not just a promise but a pragmatic business engine.
For now, the outlook remains grim, and investors seem prepared for a long wait before revival signs emerge.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
