Ola Electric Shares Decline Amid Battery Tech Controversy
Ola Electric, India’s top electric vehicle (EV) manufacturer, saw its shares drop 3% in early trading after a media report raised doubts about its proprietary battery technology. The company dismissed the report as “misleading,” but investor concerns persisted, highlighting the challenges facing the EV sector.
What Sparked the Sell-Off?
A financial daily claimed Ola Electric’s in-house “Bharat Cell” lithium-ion batteries underperformed in energy density, charging speed, and longevity compared to global rivals like CATL and LG Chem. The report cited unnamed sources and alleged internal test data.
Ola Electric denied the allegations, stating:
“The report is factually incorrect and driven by vested interests. Our batteries meet global benchmarks.”
Market Reaction & Analyst Insights
Despite the rebuttal, Ola’s stock decline extended a recent downward trend. Analysts say EV startups face skepticism over profitability and execution risks.
Priya Mathur, Market Analyst:
“Investors need verifiable data, especially as Ola scales production. Any doubts about core tech can trigger volatility.”
Ola’s Battery Plans Under Scrutiny
The company’s $500M Bharat Cell project aims to reduce India’s reliance on imported batteries. Founder Bhavish Aggarwal has promised superior performance at lower costs. However, experts caution that battery tech requires extensive R&D.
Industry Insider:
“Third-party validation could restore confidence in Ola’s claims.”
Broader Impact on India’s EV Sector
The controversy highlights challenges for India’s EV market, where trust and transparency are critical. With Tesla and legacy automakers entering, local players like Ola must prove their tech to stay competitive.
Ola plans to release detailed battery performance data soon and remains on track for 2025 production.
Key Takeaway
While the stock dip may be temporary, Ola must reinforce credibility to maintain momentum in India’s evolving EV race.
