Ola electric shares drop 8.5% as CEO Bhavish Aggarwal clashes with comedian Kunal Kamra

Ola Electric, under CEO Bhavish Aggarwal, is facing significant challenges as its stock price plunged 8.5% to ₹90.26 in morning trade on Monday. This sharp decline comes amid a rising tide of customer complaints regarding its flagship electric two-wheeler, particularly in light of a public confrontation between Aggarwal and comedian Kunal Kamra. Kamra criticized the company on social media for its inadequate service centers and a lack of refunds for dissatisfied customers, prompting a flood of complaints from frustrated users.

Since its market debut at ₹76, Ola Electric's stock had initially surged, reaching a peak of ₹157.40. However, it has now fallen by 43% from those heights, reflecting growing concerns about the company's operational challenges. In September, Ola Electric's market share in the Indian electric vehicle (EV) sector dropped to 27%, with e-scooter sales decreasing from 27,587 units in August to just 24,665. The decline is attributed to increasing competition in the EV market and significant service-related issues that have plagued the company.

The situation worsened when a recent tweet by Kamra went viral, showing dozens of neglected e-scooters gathering dust outside an Ola showroom. This incident has drawn widespread attention to the company’s service infrastructure, with many customers expressing dissatisfaction over prolonged wait times for repairs and inadequate customer support. Analysts suggest that the negative sentiment on social media can have lasting repercussions on the company’s reputation and stock performance.

Do indian consumers have a voice?
Do they deserve this?
Two wheelers are many daily wage workers lifeline…@nitin_gadkari is this how Indians will get to using EV’s? @jagograhakjago any word?
Anyone who has an issue with OLA electric leave your story below tagging all… https://t.co/G2zdIs15wh pic.twitter.com/EhJmAzhCmt

— Kunal Kamra (@kunalkamra88) October 6, 2024

Aggarwal publicly urged Kamra to "sit quiet" and allow the company to focus on resolving the issues at hand. Despite this, the exchange has amplified scrutiny of Ola Electric's service quality, with analysts noting that many service centers are struggling to keep up with the demand for repairs. A recent note from HSBC highlighted significant backlogs at multiple service stations, raising concerns about the company’s ability to manage customer expectations effectively. Amid these challenges, Aggarwal announced plans to double the number of service centers by December, aiming to improve customer satisfaction.