Ola Electric share price crashes 7% on block deal buzz; Hyundai likely seller

Shares of Ola Electric, the electric two-wheeler manufacturer, tumbled 7% in intraday deals on Tuesday, June 3, amid reports of a block deal in the counter.

According to a CNBC TV-18 report, 3.23% equity or 14.22 crore shares of the company changed hands at ₹51.4 per share. The report, citing sources, said that Hyundai was the likely seller in the Ola Electric block deals.

As of the March 2025 quarter, Hyundai Motor Company held 10.88 crore shares of Ola Electric, representing a 2.47% stake.

Ola Electric share price trend

With today's decline, Ola Electric's stock once again slipped below ₹50 per share. The EV stock opened at ₹53, slightly below its last closing price of ₹53.69 apiece. However, it soon plummeted to the day's low of ₹49.90 apiece.

Ola Electric share price also neared its 52-week low level of ₹45.55 hit on April 7, 2025.

In the last three trading sessions, Ola Electric stock has declined in two, shedding 6% during this period. However, the Bhavish Aggarwal-owned company rose 4.55% last month. This rise came after five straight months of losses.

Ola Electric posts weak Q4 results

The company last week also reported its March quarter earnings, wherein its losses more than doubled from a year earlier, pressuring its stock.

Net loss widened to ₹870 crore in the quarter ended March 31, from ₹416 crore a year earlier, the company said last Thursday. Revenue fell 62% year-on-year (YoY) to ₹611 crore.

While weak earnings plague the company, pushing back its quest to turn profitable, Ola also faces various other challenges, which have pushed its stock price by over 40% this year.

The drop comes amid a series of issues, including government scrutiny for allegedly counting bookings of yet-to-be-launched electric motorcycles and scooters as monthly sales. Additionally, the company has faced raids and vehicle seizures by state authorities over the absence of trade certificates at retail locations and alleged violations of customer rights.

The company's abrupt termination of its partnerships with registration vendors caused significant delays in vehicle registrations, directly affecting customer deliveries. This disruption, combined with ongoing product quality issues that have overwhelmed service centers with repair backlogs, has severely impacted profitability.

Founder Bhavish Aggarwal has also acknowledged the mounting competitive pressure in India’s electric two-wheeler market. Ola Electric has been steadily losing market share to established players like Bajaj Auto Ltd. and TVS Motor Co., amid persistent regulatory challenges and rising customer dissatisfaction.

“In the last quarter or two, we have lost market share as market penetration grew slower than we expected and competitive intensity increased significantly across all levers of distribution, product and pricing,” told analysts in a post-earnings conference call.

Ola Electric Stock: Time to sell?

Vaqarjaved Khan, Sr. Fundamental Analyst, Angel One, commenting on Ola stock outlook, said the overall outlook for Ola Electric looks very bleak and negative as net loss continued to widen while revenue plummeted, raising concerns over the company’s strategies in a highly competitive market.

"This trend of falling market share continued in May as well, as the company managed to sell only 18,499 units, marking a decline of 51% on YoY basis. Market share for the company plummeted to a low of 18%, which was as high as 49.2% in May 2024. The company is facing significant challenges from established players as they are consistently launching new product offerings, operational challenges for the company, negative after-sales services experience and consistent regulatory scrutiny," Khan said.

Hence, among these factors, Khan believes it's better to stay away from the stock, or one can also consider exiting their positions, as underperformance on the financial front is expected to continue.

(With inputs from Bloomberg)

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