Ola Electric's shares experienced a notable increase for the second consecutive day, climbing over 10% to reach an intraday high of ₹28.53 on the BSE. This surge follows the company's announcement of a price reduction for its Roadster X+ 9.1 kWh electric motorbike by more than 31%.
As of 13:35 IST, the stock was trading 7.10% higher at ₹27.77, with the company's market capitalization around ₹12,250 Cr (approximately $1.3 billion).
The stock's upward trend began yesterday, with a remarkable 14% rise during intraday trading, attributed to a significant increase in electric two-wheeler registrations in March. Ola Electric's registrations soared by 139%, reaching 9,496 units last month, compared to 3,973 units in February, securing a 5% market share.
Today, Ola Electric revealed that it has achieved substantial economies of scale in manufacturing its 4680 Bharat Cell, enabling it to reduce production costs for the Roadster X+ 9.1 kWh ebike. Consequently, the price has been slashed from ₹1,89,999 to ₹1,29,999.
However, the company is shifting from an open sales model to a limited purchase window system for the Roadster X+ 9.1 kWh. This means that the ebikes will be available in specific time-bound slots and in limited quantities due to high demand exceeding supply capacity. The first purchase window is set to open tomorrow.
A company spokesperson stated, "As production of our 4680 Bharat Cell scales, we are able to unlock significant cost efficiencies and pass them on directly to customers. The response to the Roadster has been extremely strong – the bike demand during our EndICEAge campaign has grown more than 5X, and this new pricing makes long-range electric mobility even more accessible."
Ola Electric is also planning to expand the capacity of its gigafactory to 6 GWh, up from an initial target of 5 GWh. This facility manufactures the lithium-ion battery 4680 Bharat Cell, which is also used in its Gen 3 range of e-scooters, including the S1 Pro+ and Gen 3 S1 X+.
This development comes after a challenging year for Ola Electric, marked by a significant decline in sales, revenue, and market share. The company's shares have dropped over 60% from their IPO price of ₹76 per share.
Financially, the company reported a 55% year-over-year decline in operating revenue, falling to ₹470 Cr, while net loss was trimmed by 14% to ₹487 Cr from ₹564 Cr in the same quarter last year.
