Ola Electric Shares Fall 7% Amid Block Deal Rumors

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June 3, 2025 wasn’t kind to Ola Electric on the stock market. The company’s share price nosedived, plunging 7.05% to ₹49.90 during the morning session on the BSE. What triggered the selloff? Whispers of a massive block deal worth ₹731 crore began circulating—though official BSE data stayed silent, CNBC TV18 pointed fingers at Hyundai Motor India as the likely offloader. For context, Hyundai held a 2.47% stake in Ola as of March.

A whopping 14.22 crore shares reportedly changed hands at ₹51.4—markedly below the previous close of ₹53.68. That’s a hefty 3.23% of the company’s entire equity being shuffled at a discount. The mood? Not great.

By mid-morning, around 11:35 AM, the bleeding continued—Ola was down 6.57% at ₹50.16. With 22.2 crore shares traded and a market cap standing at ₹22,124.72 crore, things weren’t looking stable. The drop comes hot on the heels of a brutal 10% fall last Friday, triggered by a disastrous earnings report. With a staggering ₹870 crore net loss and a 62% revenue plunge year-over-year, Ola Electric is skating on very thin ice. As if that wasn’t enough, it’s now slipped to third place in India’s EV two-wheeler race, eclipsed by TVS and Bajaj.

1. Introduction

1.1 Ola Electric’s Rocky Ride on the Markets

Ola Electric has been taking it on the chin. The 7.05% drop on June 3 is just the latest blow in a string of rough days. Just last week, the stock tanked another 10% after a grim Q4 FY25 earnings release. The share is now hovering only slightly above its 52-week low of ₹45.55. Investors are jittery, and honestly, who can blame them?

1.2 The Mysterious Block Deal

The talk of the town is a mammoth ₹731 crore block trade. The culprit? Word on the street says Hyundai Motor India dumped its shares—though there’s no formal confirmation yet. What’s glaringly obvious is that 14.22 crore shares swapped hands at a price that screams “fire sale.” That’s a significant chunk of the company’s equity, and investors are rightly uneasy about what that says regarding Ola’s future.

2. Company Overview

2.1 The Origin Story

Launched with fanfare by Bhavish Aggarwal, Ola Electric was supposed to be India’s answer to clean, smart urban mobility. Big dreams. Slick scooters. Bold tech promises. But somewhere between ideation and execution, cracks started to show.

2.2 What They Actually Sell

The bread and butter? Electric scooters. Sleek, minimal, designed for the daily grind of urban traffic. Ola also poured serious capital into battery R&D and building a charging ecosystem. The goal? Lock customers into a closed-loop system. Whether that’s actually working is up for debate.

2.3 Revenue Streams

Primarily, Ola Electric makes money from selling its scooters and a handful of services. There’s talk of monetizing its battery and charging infra later, but for now, it’s scooters doing the heavy lifting—at a loss, evidently.

2.4 The Money Trail

Hyundai was among the big-name backers, holding a 2.47% stake. Ola’s capital journey has included fat funding rounds meant to turbocharge growth. But capital doesn’t fix everything. Especially not when execution flounders.

3. Market Challenges and Competitive Landscape

3.1 Slipping from the Top

Once the dominant force with a market share north of 50%, Ola’s fall from grace has been fast and brutal. In May 2025, they were clinging to a 20% market share—now behind TVS and Bajaj. Competitors are catching up, fast. Worse? They’re doing it with fewer missteps.

3.2 Red Tape and Red Flags

February brought a strange twist: Ola claimed it sold 25,000 vehicles, but the government’s registration numbers only showed 8,600. That sparked investigations and more bad PR. The fallout? Suspended partnerships with key registration vendors, registration delays, and unhappy customers left in limbo.

3.3 Customers Are Losing Patience

If you’ve visited an Ola service center lately, you’ve probably seen it: long lines, frustrated faces, chaos. Things got so heated in Karnataka that a customer literally torched a showroom. That’s not just a PR nightmare—it’s a trust crisis.

3.4 Rival Brands Are Eating Ola’s Lunch

TVS and Bajaj didn’t come to play. Their electric offerings—the iQube and Chetak—are not only solid products, but they’re backed by years of experience, massive service networks, and customer loyalty. TVS has expanded to over 4,000 outlets. That kind of reach is tough to compete with when you’re constantly firefighting.

4. Financial Performance

4.1 Q4 FY25: A Financial Trainwreck

The numbers are as grim as they come. ₹870 crore in losses for Q4 FY25, doubling year over year. Revenue collapsed to ₹611 crore—a brutal 62% YoY drop. Toss in a ₹250 crore warranty provision, and it’s clear: Ola’s got deep-rooted quality issues. This isn’t a one-off bad quarter. It’s systemic.

4.2 Hopes for FY26

Despite all this, Ola insists FY26 will be better. The company is banking on better margins and tighter operations. Whether that optimism is grounded in reality or just corporate spin remains to be seen.

5. Industry Trends and Insights

5.1 EV Sector: Booming, But Brutal

The electric two-wheeler market in India is surging. A 25% volume spike is projected by March 2026. That said, it’s a tough battleground. Subsidies are drying up. Margins are razor-thin. And if your product or service stumbles even slightly, the market punishes you fast.

5.2 Investors Are Not in the Mood for Fairy Tales

Let’s face it—investors are losing patience with dreamy, unprofitable EV startups. Ather’s lukewarm IPO was a red flag. Ola’s stock has been a rollercoaster since it listed, reflecting growing skepticism toward companies that burn through cash without delivering steady returns.

6. Learning for Startups and Entrepreneurs

Operational Sanity > Hype

If your backend is a mess, your front-end brand won’t save you. Smooth operations matter more than Instagrammable launch events.

Stay on the Right Side of Regulators

Data inconsistencies, vendor exits, and compliance chaos? Those aren’t small hiccups. They’re red alerts.

Make Your Customers Love You—Or Watch Them Leave

Service isn’t optional. It’s survival. If people can’t get their bikes serviced or registered, they’ll never come back.

Know Who You’re Up Against

Legacy players have deeper pockets and stronger supply chains. If you don’t evolve fast, they’ll leave you in the dust.

Watch Your Burn

In capital-heavy sectors like EVs, financial missteps can sink you. Spend like you don’t have a second chance—because you might not.

About Foundlanes

At foundlanes.com, we cut through the noise. Ola Electric’s saga isn’t just about one struggling company—it’s a cautionary tale for every founder with a pitch deck and a dream. In the startup world, execution eats vision for breakfast. Stay smart, stay lean, and never lose sight of your customer.