Stock Market Today: Shares of Ola Electric, a maker of electrical two-wheeler (2W), led by Bhavish Aggarwal, fell more than 4% on Monday, March 10 after the company’s attacks, vehicle seizures and showroom closures.
A Bloomberg report shows that the company is in regulatory trouble, inviting the government to violate the rules under the warning letter under the Indian Automobile Act.
The report suggested that on the back of customer complaints, transport departments in various Indian states carried out raids, closed showrooms, grabbed the vehicle and sent a notice of reasons for the display to query the company led by Bhavish Aggarwal.
According to a survey by Bloomberg, only more than 100 locations hold the trade certificates required by the Indian Automobile Act. This means that over 95% of Bloomberg-reviewed stores lack display, for sale, offer the basic certification needed to test or transport unregistered two-wheelers.
The report further added that at least six local transport officials have probed Ora for suspected illegal acts. However, an Ora spokesperson called the violation report “misplaced” and “biased.”
OLA Power Stock Price Trend
Ola Electric shares face a new sell-off after this report, down more than 4% ₹54.11 on BSE. As a result, the stock is trading very close to its 52-week low ₹53.71, which hit the company on March 3 last week, reported that it plans to lay off more than 1,000 employees as part of its losses.
So far, the stock has gained a 36% magnitude at its peak since its listing in August and has traded more than 60% from its peak.
The EV manufacturer also recorded 25,000 vehicle sales in February, which was below the 50,000-unit target of Aggarwal last month’s monthly target to move it to Ebitda Breakeven.
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