Shares of Ola Electric Mobility, the two-wheeler electric vehicle (EV) manufacturer, dropped by 8% on Monday in early trade. This marks the third consecutive day of declines for the company, which has now lost ground in five of the last six trading sessions. Since its market debut in August, the stock has faced challenges, with its value falling over 20% in the past month alone.

Ola Electric’s initial public offering (IPO) saw the company list at Rs 76 per share. Shortly after, the stock surged, reaching a post-listing high of Rs 157.4, more than doube its issue price. However, it has since dropped 43% from those peak levels, currently trading at Rs 91.94 by late morning on Monday, with a 7.18% decline for the day.

The recent plunge in Ola Electric’s stock price comes amid a growing controversy involving the company’s CEO, Bhavish Aggarwal, and a social media dispute.

The tension arose after stand-up comedian Kunal Kamra publicly criticised the company on X for what he described as inadequate service centres and a lack of refunds for dissatisfied customers. Kamra’s tweet quickly escalated into a heated exchange between him and Bhavish Aggarwal, with frustrated customers and market observers joining in on the discussion.

The public spat between Aggarwal and Kamra has drawn attention to existing customer complaints about the company’s service. Complaints about after-sales service, especially concerning refunds and the availability of service centres, have been a recurring issue for the company, and the CEO’s confrontational response has sparked widespread criticism online.

In the past few months, Ola Electric had been positioning itself as a key player in the EV sector, with plans to expand its market share in India’s growing electric vehicle market. However, the company’s current struggles highlight the importance of customer service and reputation management, especially in a competitive industry like EV manufacturing.

Source: India Today