As Ola founder Bhavish Aggarwal got involved in a tug of words with comedian Kunal Kamra, Ola Electric saw its stock dropping to about Rs 90 a piece in the morning trade on Monday.
While Aggarwal started replying to Kamra’s tweets arrogantly, dissatisfied customers flooded X (formerly Twitter) about numerous issues with Ola’s electric two-wheeler.
What actually happened?
The argument started when the comedian tweeted regarding the ongoing servicing issues of Ola Electric's S1 series of EV scooters. Aggarwal started replying to Kamra mentioning the comedian’s “failed career” and asking him to “sit quietly”. The entrepreneur even accused the comedian of posting a “paid tweet”.
Referring to the Ola CEO as 'OLAN MUSK', the comedian tweeted back, “Paid tweet, failed comedy career & Sit quietly. Indian Businessman at their humble best…
If you can prove I am paid for the tweet this or anything else I must’ve said against private companies, I’ll delete all social media & sit quietly forever.”
Incidentally, complaints lodged against Ola scooters per month are around 80,000. Many people questioned the Ola CEO why he was not working harder to address the problems faced by his customers instead of taking digs at someone who spoke the truth.
And the share price falls…
Amid the angry exchange of words between Aggarwal and Kamra, Ola Electric's share price took a nosedive, plummeting to Rs 90.26 apiece. This 8.5 percent drop from the previous trading session reflects mounting concerns about the company's e-scooters' quality and service issues.
Since its debut on the stock market at Rs 76, Ola Electric's share price has been on a rollercoaster ride. Initially soaring to Rs 157.40, the company's stock has now spiraled downwards, trading approximately 42-43 percent lower than its peak.
The continuous decline in market share, coupled with intensifying competition, has further exacerbated Ola Electric's woes.
Ola Electric in neck-deep trouble
Ola Electric's flagship S1 series of EV scooters has been marred by numerous hardware and software issues, causing frustration among customers.
Reports of malfunctioning components, delayed service, and scarce spare parts have tarnished the company's reputation.
Competitors offering comparable models at competitive prices have further eroded Ola Electric's market position.
The Indian EV market landscape is evolving rapidly, with Ola Electric facing tough competition and declining sales.
In September, the company's market share dropped to 27 percent, reflecting a growing preference for rival offerings. With 24,665 e-scooter sales in the past month, down from 27,587 units in August, Ola Electric is grappling with dwindling consumer confidence.
As Ola Electric experiences a tumultuous period, addressing customer grievances and enhancing product quality will be crucial for its survival.
The company's stock, trading at high valuations despite being loss-making, faces uncertainties in the market. Amidst growing discontent and fierce competition, Ola Electric must strategize effectively to regain market trust and rebuild its brand image.
Also read: Bhavish Aggarwal launches HyperService to solve Ola Electric user woes (startuppedia.in)
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