Ola Electric shares ended flat in the stock market after showing a 5% surge during intraday trading. The company is currently under pressure due to its recent decision to delay plans for expanding its gigafactory. The electric vehicle (EV) market is growing slowly, and Ola Electric has adjusted its strategy accordingly.
Shift in Gigafactory Plans
Earlier, Ola Electric had ambitious plans to build a gigafactory with a capacity of 20 GWh by mid-2026. However, the company recently informed its investors that it will now limit the capacity to just 5 GWh until FY2029. This change comes only a few weeks after the company said it would delay scaling up the factory.
This shift has raised questions about Ola’s long-term strategy and investor confidence. The electric vehicle sector is still developing in India, and many companies are facing challenges with demand, infrastructure, and policy clarity.
Stock Movement and Technical Analysis
On the stock market, Ola Electric’s share price saw a temporary rise of 5% during the day but closed flat. Analysts believe the stock is currently moving in a wide range between ₹39 and ₹52. Due to this broad range, they advise caution for new investors.
Osho Krishan, Senior Analyst at Angel One, said that the stock is still near its lowest price ever. “The technical setup is weak. If the price breaks below the ₹39–₹40 level, we may see more downside. On the upside, ₹48–₹52 is a strong resistance zone,” he explained.
Buying Interest Around Support Levels
Despite the weak setup, some experts have observed small buying interest near ₹39.82. Kunal Kamble, Senior Technical Analyst at Bonanza, said, “There is buying activity near ₹39.82, which shows some support at this level. But the stock is still moving in a sideways pattern between ₹39 and ₹49. A trend reversal is not clear yet. Investors should wait for a strong breakout with volume before making any new entry.”
Jigar S Patel, Senior Manager at Anand Rathi, also shared a similar view. He said, “₹40 is a support level and ₹45 is the immediate resistance. If the price moves above ₹45 with strength, we may see it reaching ₹49 soon. For now, the stock is trading in the ₹40 to ₹49 range.”
Company Overview and Promoter Holdings
Founded in 2017, Ola Electric focuses on producing electric two-wheelers (E2Ws). The company also makes key parts such as battery packs, motors, and frames at its Ola Futurefactory. As of June 2025, the promoters held a 36.78% stake in the company.
Ola Electric’s IPO in 2024 brought high hopes among investors, especially with its plans for EV manufacturing and battery production. But the recent decisions show that the company is becoming more cautious due to the slow pace of the EV market.
Market Sentiment and What Lies Ahead
Investor sentiment toward Ola Electric has weakened slightly because of the delays and unclear growth path. The EV space in India is promising but requires heavy investment, government support, and a growing user base.
Experts suggest that traders and long-term investors should watch the stock closely. A clear breakout above ₹52 or a breakdown below ₹39 will decide the next trend. Until then, it is better to stay cautious.
Conclusion
Ola Electric is at a crucial stage. While it has the potential to become a major player in the EV sector, current market conditions are forcing the company to slow down. Investors should monitor technical levels and company updates before making any fresh investment decisions.
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