Ola Electric Slashes Price Of Flagship Ebike, Shares Jumps 10%

Shares of electric two-wheeler (E2W) maker Ola Electric rallied for the second straight session, surging over 10% to reach an intraday high of ₹28.53 on the BSE today after the company said it it cutting the price of its Roadster X+ 9.1 kWh electric motorbike by over 31%. 

At 13:35 IST, the stock was trading 7.10% higher at ₹27.77 apiece on the BSE. The company’s market capitalisation stood at around ₹12,250 Cr (about $1.3 Bn) at the time.  

The rally in the stock began yesterday, with the stock zooming over 14% during the intraday trading following a sharp improvement in its E2W registrations in March. The Bhavish Aggarwal-led company’s registrations jumped 139% to 9,496 units last month from 3,973 units in February, propelling it to the fifth position with an over 5% market share. 

Earlier today, the company said it has achieved significant “economies of scale” in terms of manufacturing its 4680 Bharat Cell, which has allowed it to offset manufacturing costs for the Roadster X+ 9.1 kWh ebike. In a bid to pass on these benefits to consumers, Ola Electric has slashed the price of these ebikes to ₹1,29,999 from ₹1,89,999 earlier. 

However, the company said it is transitioning from “open sales” of Roadster X+ 9.1 kWh to a limited purchase window model, with vehicles made available in specific time-bound slots and limited quantities. As per Ola Electric, the demand for the ebike has surpassed supply capacity and hence only limited units will be available during short windows. The first such purchase window will be opened tomorrow. 

“As production of our 4680 Bharat Cell scales, we are able to unlock significant cost efficiencies and pass them on directly to customers. The response to the Roadster has been extremely strong – the bike demand during our EndICEAge campaign has grown more than 5X, and this new pricing makes long range electric mobility even more accessible,” a company spokesperson said. 

Ola Electric also said that it is now looking to scale the capacity of its gigafactory to 6 GWh compared to its initial target of 5 GWh. The lithium-ion battery 4680 Bharat Cell is manufactured at this plant, and is fitted in its Gen 3 range of escooters as well, which includes the S1 Pro+ and Gen 3 S1 X+. 

The development comes following a year of sharp decline in sales, revenue and E2W market share of Ola Electric. As a result, the company’s shares are down over 60% from their IPO price of ₹76 per share.

On the financial front, the company’s operating revenue plunged 55% YoY and 32% QoQ to ₹470 Cr, even as it trimmed net loss by 14% to ₹487 Cr from ₹564 Cr in the year-ago quarter.

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