Ola Electric Surges Post-Consumer Rights Notice

Shares of Ola Electric Mobility rose over 5% despite a show cause notice from the CCPA for alleged misleading practices. The company's stock rebounded after initial losses, with significant trading volume on the BSE and NSE. Ola Electric clarified no financial impact from the notice.

Shares of Ola Electric Mobility rebounded on Tuesday, closing over 5% higher after initially suffering losses prompted by a regulatory notice. The Central Consumer Protection Authority (CCPA) had issued a show cause notice to the electric vehicle manufacturer, alleging misleading advertisements and unfair trade practices.

Despite these allegations, investors seemed unfazed; the company's stock gained 5.15% on the NSE to end at Rs 95.50. Similarly, on the BSE, it closed up 5.11% at Rs 95.46. Earlier, the stock had plummeted 6.17% intraday, striking a low of Rs 85.21.

Ola Electric clarified that the show cause notice would have no financial or operational repercussions. Meanwhile, market dynamics continued to challenge the EV maker as it faced growing competition from traditional auto giants like Bajaj Auto and TVS Motor.

(With inputs from agencies.)