Ola Electric causes loss to investors, market cap reduced by 38,000 crore
New Delhi| There has been a huge fall in the shares of Ola Electric in the last few months and due to this investors have suffered huge losses. The share was at Rs 70.20 on Tuesday, down 55 per cent or Rs 87.20 per share from its all-time high of 157.40 per share.
With the fall in the share, the market cap of the company has also reduced by Rs 38,000 crore. The market cap of the company had reached around Rs 69,000 crore at an all time high, which has come down to only Rs 31,000 crore.
The decline in the company’s shares is being attributed to continuous complaints from customers regarding poor service and product quality.
Speaking to IANS, an Ola Electric customer said that it has been almost four months since I bought the car. There have been problems with the vehicle in the last two months. Brake shoes have been damaged three times in a month. The service is very bad. Never gets the number on the first day.
Other customers said that the vehicle also has many other problems like software, battery and tire jam.
Vishal, a lawyer in Varanasi, told IANS that I have Ola Electric’s S1 Air. It has not been even a year since the car was purchased, but its battery has been damaged three times. There are many problems regarding software in this. These crash, due to which the vehicle gets haggled. Local mechanics can’t fix this. For this reason, taking it to the service center is sown again and again.
Further said that once the vehicle is taken to the service center, the scooter remains parked there for at least a week to a month. Apart from this, one reason for the fall in the shares of Ola Electric is the company’s continuous loss.
In the second quarter of FY 2024-25, the company had reported a loss of Rs 495 crore. During this period, the company’s income was Rs 1,214 crore. In the period April to June of the previous quarter i.e. FY 2024-25, Ola Electric’s income was Rs 1,644 crore. During this period, the company had suffered a loss of Rs 347 crore.
