Ola Electric shares surge 25% in two sessions, here is why

Shares of Ola Electric, the Bengaluru-based electric two-wheeler maker, rose for a second straight session on Thursday, April 2. The stock in the last two trading sessions has surged as much as 25% to hit a high of ₹28.55 on the National Stock Exchange (NSE). In intraday deals, Ola Electric shares advanced as much as 10.10% amid spike in trading activity.

The stock came under buying interest on Wednesday after the company said that its daily orders in the last week of March crossed 1,000 units and registrations surged to 10,117 units during the month from 3,973 units in February, translating to over 150% month-on-month (M-o-M) growth signalling a sharp resurgence in demand momentum. Market share also witnessed a V-shaped M-o-M recovery, with the company continuing to gain share through the month, Ola Electric said.

"This demand recovery is being driven by a structural transformation in service operations. Over 80% of vehicles are now serviced on the same day, enabled by improved parts availability, faster diagnostics, and tighter operational control across the network. Following a period of service challenges in recent months, the company has implemented deep operational changes, resulting in significantly improved turnaround times and customer experience, strengthening customer trust and driving demand," Ola Electric said.

In March, Ola Electric also became the first EV brand in India to cross 1 million cumulative registrations (as per VAHAN data), marking a historic milestone for the company and a defining moment for India’s EV ecosystem, the Bengaluru-based company added.

Meanwhile, in a separate regulatory filing on Tuesday, Ola Electric said that it has reduced price for its flagship electric motorcycle, the 4680 Bharat Cell powered Roadster X+ 9.1 kWh, enabled by rapid economies of scale at its Gigafactory and deep vertical integration of its indigenously developed 4680 Bharat Cell.

Ola Electric has reduced price of Roadster 9.1 kWh by ₹60,000 to 1,29,999 from ₹1,89,999,

"As cell production has ramped up, cost efficiencies have improved materially, allowing Ola Electric to pass on these benefits directly to customers. The Roadster 9.1 kWh will now be priced at ₹1,29,999, down from ₹1,89,999, and would be available in limited units only during specific purchase windows," the company said.

"Ola Electric will transition from open sales of Roadster X+ 9.1 kWh to a limited purchase window model, with vehicles made available in specific time-bound slots and limited quantities. The first purchase window will open on Friday, April 3, from 6:00 PM to 9:00 PM, with subsequent windows to be announced periodically based on production availability. The Roadster 9.1 kWh, Ola Electric’s highest-performance electric motorcycle offering a range of up to 500 km, has witnessed overwhelming demand, far exceeding current supply capacity," the electric two-wheeler added.

Ola Electric shares were witnessing higher than usual trading activity as trading volume jumped by 2.3 times to 24.10 crore shares compared with an average trading volume of 10.40 crore shares.

On the BSE, as many as 1.51 crore shares changed hands compared with an average of 71 lakh shares traded daily in the past two weeks.

As of 11:42 am, Ola Electric shares traded 7.88% higher at ₹27.93, outperforming the NIFTY50 index which was down nearly 2%.