Ola Electric's stock plunges amid CEO's spat with Kunal Kamra
What's the story
Ola Electric's shares plunged 9.4% to ₹89.7 on Monday's intraday trade on the BSE.
The financial loss came after a public spat between the company's founder and CEO Bhavish Aggarwal and comedian Kunal Kamra on X (formerly Twitter).
The feud was sparked by Kamra's post displaying numerous Ola e-scooters parked outside a company dealership, seemingly abandoned and gathering dust.
Public exchange
Kamra questions EV adoption, Aggarwal responds
Kamra further extended his criticism by tagging Nitin Gadkari, the Minister of Road Transport and Highways, in his post.
He asked, "Is this how Indians will get to using EVs?" and asked for the Department of Consumer Affairs's feedback.
Responding to Kamra's allegations of service issues with Ola Electric's scooters, Aggarwal accused him of sharing a "paid tweet" and challenged him to help resolve the issues.
CEO's retort
Aggarwal's response sparks backlash
Aggarwal's response to Kamra was criticized by many users who found his tone "arrogant."
One user advised him to focus on customer service and take feedback positively for long-term success.
Another highlighted the plight of middle-class consumers facing issues with their newly purchased Ola scooters.
After the fall in share prices, social media influencer and YouTuber Akash Banerjee also took a dig at Aggarwal on X.
Market downturn
Ola Electric's market performance and earnings in Q1
Despite the ongoing challenges, Ola Electric's shares are still 18% higher than their IPO listing price of ₹76. However, they have plummeted by a whopping 43% from their all-time high of ₹157.5.
In Q1 FY25, the company posted a 32% increase in revenue to ₹1,644 crore but also witnessed its net loss widen to ₹347 crore from a loss of ₹267 crore in the same period last year.
Consumer unrest
Ola Electric faces customer backlash and declining sales
Ola Electric has been dealing with customer dissatisfaction, as seen in incidents like a showroom being set on fire in Kalaburagi, Karnataka, and a complaint filed under Section 35 of the Consumer Protection Act 2019 in Bengaluru.
The company's market share has been declining for five months straight. Data from Vahan portal showed that Ola Electric sold just 23,965 electric scooter units in September, its lowest monthly sales this year.
The company is also receiving approximately 80,000 complaints per month.