Ola Electric has experienced a significant surge in its stock price, climbing nearly 20% to reach the upper circuit limit. The shares closed at ₹36.34, a notable increase from the previous close of ₹30.29.
The stock opened at ₹30.49 and steadily rose throughout the trading session, with over 42 crore shares traded, resulting in a turnover of approximately ₹147 crore. The company's market capitalization stood at ₹16,029 crore (around $1.7 billion) at the end of the day.
Key Development: This rally was spurred by the company's announcement that its in-house developed 46100 Lithium Iron Phosphate (LFP) cell is ready for production. This advancement is crucial for Ola's strategy towards vertical integration and cost-effective electric vehicle manufacturing.
The new LFP cell, larger than the existing NMC 4680 Bharat Cell, is expected to enhance scale, cost efficiency, and versatility across both mobility and energy storage solutions. Ola plans to incorporate this cell into its products starting next quarter.
Production Capacity Expansion: Ola Electric is also in the process of increasing the capacity of its Gigafactory from 2.5 GWh to 6 GWh. Vehicles equipped with the 4680 Bharat Cells are already operational on the roads.
Earlier this month, the company received Production Linked Incentive (PLI) certification for its ebike Roadster X+ 4.5 kWh, confirming compliance with domestic value addition norms, which qualifies it for government incentives.
Additionally, Ola Electric recently reduced the price of the Roadster X+ 9.1 kWh by 31%, driven by improved cell production and cost efficiencies, aiming to boost vehicle registrations.
After facing declining sales and market share for several months, Ola Electric has shown signs of recovery. In March, electric two-wheeler registrations surged by 139% month-over-month, reaching 9,496 units, with daily registrations exceeding 1,000 in the last week of the month. The company's market share improved to over 5%, reclaiming the fifth position in the segment.
The company has also enhanced its after-sales service, achieving over 80% same-day resolution rates. Initiatives such as extended warranties of up to eight years and assured buyback schemes are contributing to customer satisfaction.
As a result of these developments, Ola Electric's shares have risen significantly over the past week, increasing over 59% from ₹22.82 on March 30, although they remain below the IPO price of ₹76.
