Ola Electric shares are in focus today after the company announced the launch of its S1 Z and Gig electric scooter ranges, priced at an attractive Rs 39,000 and Rs 39,999, respectively. These new launches have created a buzz in the market as they offer the lowest-priced models in Ola's electric scooter lineup, potentially expanding its consumer base and boosting its market position.

New scooter launches targeting urban commuters and gig workers

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The S1 Z and Gig electric scooters cater to distinct segments. The S1 Z is aimed at urban commuters looking for a personal-use electric scooter, while the Gig range targets gig workers, offering solutions for both short and long trips. The S1 Z offers a top speed of 70 km/h with a 75 km range, while the Gig variants, Gig and Gig+, cater to business-to-business (B2B) needs with a range of 81 km and 157 km, respectively.

Ola Electric has introduced a removable battery pack with its PowerPod, priced at Rs 9,999, which doubles as a home inverter, adding more appeal to its offering.

Stock movement and market sentiment

On Tuesday, Ola Electric's shares surged by 5.7 per cent to Rs 73.5, closing higher even as the benchmark Sensex declined. However, the stock has fallen 41 per cent in the past three months, reflecting investor concerns despite its recent gains.

Market expert Anil Singhvi provided a favourable outlook on Ola Electric's stock, advising investors to consider buying at Rs 71.50, with target prices of Rs 75, Rs 76.50, and Rs 78. Singhvi pointed out that the stock has experienced a deep correction from its peak and the current risk-reward ratio appears favourable near the Rs 70 level.

The company's market capitalization stands at Rs 32,406 crore, and despite its recent stock decline, analysts see the potential for the shares to recover due to the positive reception of these new EV models.

Launch amidst challenges

The new launches come amid ongoing customer complaints and regulatory scrutiny. The Central Consumer Protection Authority (CCPA) has investigated alleged deficiencies in Ola's services, though the company has resolved most complaints. Additionally, the company recently laid off 500 employees as part of a restructuring exercise.

Ola Electric's expansion into the commercial segment with the Gig range shows the company’s strategy to tap into the growing gig economy, potentially increasing demand for its affordable electric vehicles.

Ola Electric's strategic shift towards affordability and the gig economy could position it for a stronger market presence, making its stock a focal point for investors today.