8 october 2024 : Ola Electric Mobility’s shares dropped by 6% on Tuesday after receiving a show cause notice from the Central Consumer Protection Authority (CCPA) over allegations of misleading advertisements and unfair trade practices. The stock fell 6.17% on the BSE, trading at ₹85.21, marking its fourth consecutive day of losses, while it declined 5.30% on the NSE to ₹86 per share.
This came amid broader gains in the market, with the BSE Sensex rising 407 points to 81,457 and the NSE Nifty gaining 145 points to 24,941.
Ola Electric clarified that the notice did not impose any penalties or fines and would not impact the company’s operations or finances. The CCPA has given the company 15 days to respond.
The stock had already declined by 8% on Monday following reports of service quality issues with its electric scooters and a social media spat between Ola CEO Bhavish Aggarwal and comedian Kunal Kamra. The disagreement began when Kamra posted a photo criticizing the company’s service after Aggarwal shared a photo of Ola’s gigafactory. The online clash highlighted complaints about the company’s after-sales service.
Ola Electric’s shares have fallen by 46% from their peak of ₹157.4, after being listed at ₹76 in August. The company is losing market share to established auto manufacturers like Bajaj Auto and TVS Motor as they increase their EV offerings.
