Ola Electric Shares in Focus After February Sales Added E-Motorbikes

Tuesday, we will see a focus on Ola Electric Mobility shares after the Bhavish Aggarwal-led company included reservations for e-scooters and electric motorbikes, some of which have not yet been released, in its February sales results, according to Bloomberg. As the business looks to win back investor trust, the action exaggerates its market share.

In a letter dated March 21, the SoftBank Group-backed company informed India’s Ministry of Road Transport and Highways that it had included client reservations for 1,395 Roadster X bikes and 10,866 third-generation e-scooters in its February sales record, referring to them as “confirmed orders.”

The Roadster X bikes have not yet been released, but the third-generation scooter deliveries started in March. When taken as a whole, these models represented over half of the 25,207 “confirmed orders” Ola reported for February. The government requested that the firm clarify its claimed sales.

In a filing on February 28, the company, run by Bhavish Aggarwal, stated that it had sold “more than 25,000 units” in February. However, just 8,600 vehicles, or around one-third of the total sales, were reflected in the car registration tally from a government webpage.

Ola has previously blamed two vendors’ renegotiations for the delay. However, the discrepancy between reported sales and actual registrations led the ministry to inquire. Ola provided booking data in its March 21 answer, but it could not clarify if the cars had been delivered or billed.

In a letter dated March 31, the government requested that Ola update the numbers only to reflect the vehicles billed in its February statistics. Additionally, it asked Ola to respond “to avoid any adverse action” within seven days—Bloomberg News saw both letters.

Ola Shares Technical Indicators:

The stock’s Relative Strength Index (RSI) is now at 39.6 on a technical level. Oversold circumstances are indicated by an RSI below 30, while overbought territory is indicated by an RSI over 70. The stock’s MACD is below its center line at -2.4, indicating a bear market.

All significant short- and long-term moving averages, including the 20-day and 200-day (SMAs), are now below the price of Ola shares.

Ola Electric Price Performance:

Over the last three months, the stock has down 36%, and over the previous six months, it has dropped 44%. At the moment, its market value is Rs 22,936 crore.