Stock market today: Shares of Ola Electric, the electric two-wheeler (2W) manufacturer led by Bhavish Aggarwal, dropped over 4% on Monday, March 10, following reports of raids, vehicle seizures, and showroom shutdowns at the company.
A Bloomberg report suggests that the company is in regulatory trouble, inviting warning letters from the government for flouting rules under India’s Motor Vehicles Act.
The report suggested that on the back of customer complaints, transport authorities across Indian states have conducted raids, closed showrooms, seized vehicles and sent show-cause notices querying the Bhavish Aggarwal-led firm.
Out of approximately 3,400 showrooms for which data is available, just over 100 locations held the trade certificates required under India’s Motor Vehicles Act, as per Bloomberg’s investigation. This means more than 95% of the stores Bloomberg reviewed lacked the essential certification needed to display, sell, offer test rides, or transport unregistered two-wheelers.
The report further added that at least six local transport officials were probing Ola for alleged violations. An Ola spokesperson, however, called the reports of non-compliance “misplaced” and “prejudiced”.
Ola Electric Share Price Trend
Following this report, shares of Ola Electric faced a fresh selloff, declining over 4% to the day’s low of ₹54.11 apiece on the BSE. With this, the stock traded very close to its 52-week low of ₹53.71, it hit last week on March 3 amid reports that it is planning to lay off over 1,000 employees as part of its efforts to contain losses.
So far in 2025, the stock has tanked 36% and trades over 60% from its peak since listing in August.
The EV maker also recorded sales of 25,000 units in February, which was lower than the 50,000-unit monthly target Aggarwal had pegged in an earnings call last month for it to turn EBITDA breakeven.
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