Why Ola Electric Hit Historic Lows: Founder's Big Share Sale
Ola Electric's shares have plunged to an all-time low after its founder, Bhavish Aggarwal, aggressively sold shares worth over ₹324 crore to repay a personal loan and unpledge shares. This sale has created uncertainty among investors, leading to a significant drop in the company's valuation from over ₹69,000 crore to under ₹14,000 crore, raising questions about future stability and the company's ability to regain market trust amid a hyper-competitive EV landscape.
Ola Electric shares have recently plummeted to an all-time low, sending ripples of concern through the market. This significant drop is largely attributed to founder Bhavish Aggarwal's substantial share sales, exceeding ₹324 crore over three consecutive days. The aggressive divestment, which saw shares traded at approximately ₹31.60 apiece, was primarily undertaken to repay a ₹260 crore promoter-level loan and unpledge his shares, a move intended to eliminate a perceived market overhang.
While the company asserts that this action is for risk mitigation and does not affect operations, investors have reacted with skepticism. The strategic move aims to rid the company of any leverage, yet it has coincided with a dramatic fall in Ola Electric's market capitalization, shrinking from over ₹69,000 crore to just under ₹14,000 crore. Despite the founder's sales, the promoter group still maintains a significant 34% ownership, ensuring no dilution of control and positioning it among the highest for new-age listed companies.
However, the timing of these sales coincides with other challenges for Ola Electric. The company has grappled with a significant decline in its electric two-wheeler sales, which plunged by 71% year-on-year to just 8,400 units in November 2025. This marks the lowest monthly sales in over three years, pushing Ola from its top market position down to fifth place. Increased competition and quality concerns have contributed to this decline, prompting the company to reduce its future sales guidance and prioritize margin and cash discipline in a hyper-competitive electric vehicle landscape.
Financially, Ola Electric reported a net loss of ₹418 crore in the July-September quarter of 2025-26, with revenue decreasing by 43% to ₹690 crore. While the auto segment achieved its first-ever quarter of profitability with a positive EBITDA of 0.3%, the overall picture remains challenging. The founder's strategic monetization of shares, while designed to de-risk his personal finances and the company's pledged assets, has inadvertently fueled investor uncertainty, emphasizing the delicate balance between founder liquidity management and market confidence amidst a tough economic climate.
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