Ola Electric Shares Dipped To All-Time Low Amid Layoff Reports: What Investors Should Keep In Mind
Shares of Ola Electric Mobility Ltd continued their downward trajectory, slipping for the sixth consecutive trading session on Monday. The stock plummeted by 5.52 per cent to touch a new all-time low of Rs 53.71 before recovering slightly to Rs 54.73, reflecting a 3.73 per cent decline in intraday trade. Over the past six months, the stock has witnessed a steep drop of 51.80 per cent. The latest slump follows reports indicating that the electric two-wheeler manufacturer is set to downsize its workforce, with over 1,000 employees and contract workers allegedly facing layoffs. The move is reportedly part of the company’s broader strategy to enhance profitability. However, no official confirmation has been shared by Ola Electric on the matter. The layoffs are said to include payroll employees and contract workers as well. These layoffs are expected to impact more than a quarter of the company’s workforce, with the company employing around 4,000 employees as of March 2024. This isn’t the first time the company is planning to conduct mass layoffs. Earlier in November, reports claimed that the company fired 500 employees. Recently, Ola Electric also reported a 50 per cent jump in its losses for the December quarter. Sell Orders Trading activity in Ola Electric's stock surged on the Bombay Stock Exchange (BSE), with around 41.06 lakh shares changing hands, significantly exceeding the two-week average volume of 23.87 lakh shares. The turnover on the counter stood at Rs 22.60 crore, bringing the company's market capitalisation to Rs 24,114.01 crore. The stock saw sell orders amounting to 5.35 lakh shares against 4.12 lakh buy orders. The stock is currently trading below key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMA). Its 14-day relative strength index (RSI) stands at 23.41, placing it in the oversold territory, which is typically defined as a level below 30. Established in 2017, Ola Electric focuses on manufacturing electric vehicles and key components such as battery packs, motors, and vehicle frames at its Ola Futurefactory. As of December 2024, promoters held a 36.78 per cent stake in the electric two-wheeler firm.
Shares of Ola Electric Mobility Ltd continued their downward trajectory, slipping for the sixth consecutive trading session on Monday. The stock plummeted by 5.52 per cent to touch a new all-time low of Rs 53.71 before recovering slightly to Rs 54.73, reflecting a 3.73 per cent decline in intraday trade. Over the past six months, the stock has witnessed a steep drop of 51.80 per cent.
The latest slump follows reports indicating that the electric two-wheeler manufacturer is set to downsize its workforce, with over 1,000 employees and contract workers allegedly facing layoffs. The move is reportedly part of the company’s broader strategy to enhance profitability.
However, no official confirmation has been shared by Ola Electric on the matter. The layoffs are said to include payroll employees and contract workers as well.
These layoffs are expected to impact more than a quarter of the company’s workforce, with the company employing around 4,000 employees as of March 2024.
This isn’t the first time the company is planning to conduct mass layoffs. Earlier in November, reports claimed that the company fired 500 employees. Recently, Ola Electric also reported a 50 per cent jump in its losses for the December quarter.
Sell Orders
Trading activity in Ola Electric's stock surged on the Bombay Stock Exchange (BSE), with around 41.06 lakh shares changing hands, significantly exceeding the two-week average volume of 23.87 lakh shares. The turnover on the counter stood at Rs 22.60 crore, bringing the company's market capitalisation to Rs 24,114.01 crore. The stock saw sell orders amounting to 5.35 lakh shares against 4.12 lakh buy orders.
The stock is currently trading below key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, and 100-day simple moving averages (SMA). Its 14-day relative strength index (RSI) stands at 23.41, placing it in the oversold territory, which is typically defined as a level below 30.
Established in 2017, Ola Electric focuses on manufacturing electric vehicles and key components such as battery packs, motors, and vehicle frames at its Ola Futurefactory. As of December 2024, promoters held a 36.78 per cent stake in the electric two-wheeler firm.
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