The share price of Ola Electric, an EV two-wheeler company, traded deep in the red Tuesday with the stock slipping below its issue price of Rs 76 for the first time ever in its listing history.
Ola Electric shares open in the red on Tuesday. The stock has managed a lifetime low of Rs 74.84 till date in the trading session so far.
Ola Electric shares have slipped nearly 50 per cent from the all-time high after a steep fall and were down 3 per cent at Rs 75.25 in intraday trade at 12 P.M.
Ola Electric's shares were listed in the stock market in August this year. After listing, a sharp rally was seen in Ola Electric and the counter touched an all-time high of Rs 157.40 before starting the steep fall.
As market analysts point out, in case Ola stock does not hold above Rs 76 levels, which were marked at its IPO times, it might decline due to institutional and retail sellers.
"Selling is witnessed in shares at all levels. Weakness persisting, the investor should stay away from this stock and invest only in companies that have strong fundamentals," they said.
The company is facing criticism through its low sales figures and poor service. That's why Ola Electric shares' weakness is being attributed to it.
According to the Vahan portal of the government, the company has sold 24,665 electric scooters during September, while it was 27,857 during August.
Another reason for the falling market share of Ola Electric is the growing competition in the market.
The big auto companies are also trying to establish their foothold in the electric two-wheeler sector.
Customers are facing many problems in Ola Electric's EV, which include problems relating to software and hardware, and service centers, reports said.
Ola Electric's flagship S1 series EV scooter has become a nightmare for hundreds of customers who are consistently facing issues like malfunctioning hardware and glitches in software.
Spare parts are not readily available, which means that the time taken for repair is inordinate.
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