Ola Electric Shares Climb 6% Following Store Network Expansion to 4,000 Outlets

Ola Electric Mobility Ltd, a leading name in the electric vehicle (EV) sector, has significantly broadened its retail footprint by increasing its store network to 4,000 outlets nationwide. This marks a fourfold expansion from its previous scale.

The company announced that more than 3,200 new outlets, integrated with service facilities, have been added to its network, aiming to make EVs more accessible in towns and rural areas beyond Tier-1 and Tier-2 cities.

In a filing with the Bombay Stock Exchange (BSE), Ola Electric emphasized its commitment to driving EV adoption across India by strengthening its presence in nearly every town and tehsil.

On Wednesday, Ola Electric’s shares recorded a 6.22 per cent jump, reaching an intraday high of Rs 99.90. By the end of the trading session, the stock was up 1.78 per cent at Rs 95.72. This increase reflects a 30.41 per cent rise over the past month, showcasing robust investor confidence.

Earlier in December, the Central Consumer Protection Authority (CCPA) issued a showcause notice to Ola Electric, requesting additional documentation and details regarding its approach to managing consumer complaints. This regulatory scrutiny has not deterred the company’s stock performance.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that the stock is in an upward trajectory after hitting a historic low of Rs 66.60. He suggested that high-risk investors could consider buying with a one-year investment horizon.

Ravi Singh, Senior Vice-President at Religare Broking, highlighted that the stock could face resistance in the Rs 100-Rs 110 range, while support levels lie in the Rs 92-Rs 80 zone. He recommended buying near Rs 85 for an upside target of Rs 100, with a stop loss at Rs 80.

Similarly, Kushal Gandhi, Technical Analyst at StoxBox, pointed out the stock’s recovery from a low of Rs 66.66. He advised investors to set a target price of Rs 110, maintaining a stop loss at Rs 91.10.

Founded in 2017, Ola Electric focuses on manufacturing electric vehicles and key components such as battery packs, motors, and vehicle frames. Its production facilities are located at the Ola Futurefactory. As of September 2024, promoters held a 36.78 per cent stake in the company, underscoring its strong foundation in the electric two-wheeler (E2W) market.