Shares of Ola Electric declined by 7.2% to ₹49.48 on the Bombay Stock Exchange on Thursday, erasing the gains of a recent two-day rally that had seen its stock surge nearly 29% to a three-month high.
Investor optimism cooled after new government VAHAN data showed a drop in EV registrations, raising doubts about Ola Electric’s underlying sales momentum despite the recent stock jump.
The bearish sentiment was also influenced by broader uncertainties around Goods and Services Tax (GST) reforms and growing concerns over the company’s earnings outlook.
Meanwhile, technical analysts flagged the stock as overbought following its sharp rally, signaling a likely correction based on momentum indicators rather than fundamentals.
This recent downturn follows the two-day surge earlier in the week: the stock had risen 14.5% on Wednesday to ₹51.33 and added an 8.8% gain on Tuesday, reflecting investor hopes tied to impending GST policy changes.
The reversal now leaves Ola Electric at a critical juncture, balancing between speculative short-term sentiment and longer-term challenges including regulatory scrutiny, competition, and sustained profitability.
