Shares of Ola Electric, the electric two-wheeler manufacturer, continued their upward trend, climbing over 10% to reach an intraday high of ₹28.53 on the BSE. This surge followed the company’s announcement of a price cut exceeding 31% on its Roadster X+ 9.1 kWh electric motorbike.
As of 13:35 IST, the stock was trading at ₹27.77 apiece on the BSE, marking a 7.10% increase. The company’s market capitalization was approximately ₹12,250 Cr (about $1.3 Bn) at that time.
The stock’s rally began the previous day, with intraday trading showing a surge of over 14%, spurred by a significant increase in its E2W registrations in March. Registrations for the Bhavish Aggarwal-led company rose by 139% to 9,496 units last month, up from 3,973 units in February, positioning it fifth in the market with over 5% market share.
Earlier in the day, Ola Electric reported achieving substantial economies of scale in manufacturing its 4680 Bharat Cell, which allowed it to offset production costs for the Roadster X+ 9.1 kWh ebike. The company has reduced the price of these ebikes to ₹1,29,999 from the previous ₹1,89,999 to pass on these benefits to consumers.
Ola Electric also announced a shift from open sales of the Roadster X+ 9.1 kWh to a limited purchase window model, offering vehicles in specific, time-limited slots and quantities. According to the company, demand for the ebike has exceeded supply capacity, necessitating the limited availability during short windows. The first purchase window is scheduled to open tomorrow.
A company spokesperson stated that scaling the production of their 4680 Bharat Cell has enabled them to unlock significant cost efficiencies, which are being passed on to customers. The spokesperson added that the response to the Roadster has been exceptionally strong, with demand growing more than 5X during their EndICEAge campaign, making long-range electric mobility more accessible with the new pricing.
The company is also increasing the capacity of its gigafactory to 6 GWh, up from an initial target of 5 GWh. The lithium-ion battery 4680 Bharat Cell, manufactured at this plant, is used in its Gen 3 range of escooters, including the S1 Pro+ and Gen 3 S1 X+.
This development follows a year of declining sales, revenue, and E2W market share for Ola Electric, with shares down over 60% from their IPO price of ₹76 per share.
On the financial front, the company’s operating revenue decreased by 55% year-over-year and 32% quarter-over-quarter to ₹470 Cr, while net loss decreased by 14% to ₹487 Cr from ₹564 Cr in the previous year.
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