Bhavish Agarwal's Ola Electric shares decline by over 8%, market cap drops to...

Ola founder Bhavish Agarwal's Ola Electric Mobility has been in the news after reports of service quality issues with its electric scooters. Shares of the company also declined since its listing in the market. Now, on Monday, Ola Electric shares slumped by 8.30 per cent to Rs 90.82. The slide in the shares also came after a war of words broke out between Bhavish Agarwal and stand-up comedian Kunal Kamra on Sunday on social media platform X over the after-sales and service quality.

Sliding for the third straight day, the stock of the company earlier plunged 9.14 per cent to trade at Rs 90 apiece on the NSE. On the BSE, it fell 8.93 per cent to Rs 90.20 per piece. Later, it slumped 9.59 per cent and 9.43 per cent to hit register an intraday low of Rs 89.55 and 89.71, on the NSE and BSE, respectively. However, it closed at Rs 90.82 on October 7. The market cap of the company has now dropped to Rs 40,059 crore.

In August this year, Ola Electric Mobility was listed at an issue price of Rs 76. It quickly doubled from its issue price to make a post-listing high of Rs 157.4. Since touching the all-time high, the stock is down 43 per cent from those levels. However, Ola Electric has been losing market share to legacy auto players like Bajaj Auto and TVS Motor as they ramp up their push within the EV space.

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On Sunday, a controversy started when Kamra and Agarwal when the former responded to a post on X by Ola CEO, who posted a photo of Ola's gigafactory, by putting a picture of several Ola Electric scooters parked together seemingly waiting for servicing.

In response to Kamra's tweet, Bhavish Aggarwal called him a failed stand-up comic and his tweet a "paid one” asserting that Ola Electric is rapidly expanding its service network and will clear all the backlogs "soon." Further, many Ola Electric consumers jumped into the spat and complained about the service quality of the company, asking Agarwal to address their issues.

(With inputs from PTI)