Ola Electric Shares Plunge Amid Service Quality Concerns

Ola Electric's shares dropped 9% following reports of service issues with its scooters and a social media spat involving CEO Bhavish Agarwal. Consumer complaints escalated, pressuring the company's market position. This downturn marks a significant decline from its earlier high, amid intensified competition from auto giants.

Shares of Ola Electric Mobility took a sharp fall on Monday, shedding 9% in value following reports of service quality issues surrounding its electric scooters. The drop coincides with a public argument between the company's CEO Bhavish Agarwal and comedian Kunal Kamra on social media platform X.

Ola's stock continued to decline for a third consecutive day, plummeting 9.14% to Rs 90 on the NSE and 8.93% to Rs 90.20 on the BSE. The descent reached an intraday low of Rs 89.55 on the NSE and Rs 89.71 on the BSE. The controversy erupted when Kamra commented on Agarwal's post showcasing Ola's gigafactory, juxtaposing it with a photo of numerous Ola scooters seemingly queued for service.

Agarwal dismissed Kamra's remarks as those of a 'failed stand-up comic' and alleged his tweet was 'paid.' Meanwhile, customer complaints on the platform grew, demanding action from Agarwal. Ola Electric's market presence is under threat, particularly as competitors like Bajaj Auto and TVS Motor strengthen their foothold in the electric vehicle market.

(With inputs from agencies.)