Ola Electric Mobility Shares Hit Upper Circuit After New Launches

Shares of Ola Electric Mobility Ltd. hit an upper circuit on Wednesday and recorded the best session in over two months after the electric scooter manufacturer unveiled new two-wheelers aimed at India's gig workers.

Ola Electric launched two new ranges of electric two-wheelers, each featuring two models, along with a portable battery pack, the Ola PowerPod, which can also function as a home inverter.

Both ranges feature swappable batteries, with three of the four new variants capable of supporting up to two 1.5 kWh battery packs. These vehicles are specifically designed for urban commuting.

The Ola S1 Z and Ola Gig e-scooter ranges' prices start at Rs 39,000. Bookings are now open, and deliveries are expected to begin in April next year, Chief Executive Officer Bhavish Aggarwal posted on X.

The development comes after the electric scooter manufacturer has been laying off 100 employees each week since its service-related issues surfaced nearly two months ago. During a post-earnings call on Nov. 8, Ola Electric confirmed that its service centres were operating beyond capacity.

The share price of Ola Electric rose as much as 19.99% during the day on the National Stock Exchange to Rs 88.10 apiece — the highest intraday gains since Sept. 17 — as compared to a 0.31% advance in the benchmark Nifty 50 as of 3:23 p.m.

The stock has fallen 3.40% since its listing on Aug. 9. The total traded volume so far in the day stood at 7.4 times its 30-day average. The relative strength index was at 64.

Five out of the seven analysts tracking the company have a 'buy' rating on the stock and two suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 21.4%.