Ola Electric’s High-Speed Ride Toward Uncertainty

When Ola Electric launched its electric scooters into the Indian market, it promised to revolutionize the country’s electric vehicle (EV) landscape. The company quickly became a household name with its sleek design, competitive pricing, and ambitious vision. But beneath the flashy advertisements and confident sales pitches, cracks in the foundation are beginning to show.

The company is now facing allegations of accounting fraud, and one of its subsidiaries is facing insolvency concerns. Ola Electric has unnecessarily caught itself in a storm of controversies.

The company has seen a sharp drop in its share price from its all-time high. Currently, it is trading near its 52-week low. Amidst all this, the big question remains: Is Ola Electric the future of mobility in India, or is it speeding toward disaster?

Sales Figures: A Case of Missing Scooters?

Ola Electric in its sales report announced that it sold 25,000 scooters in February 2025. However, official records from the Vahan vehicle registration website tell a very different story—only 8,600 scooters were registered in that period. That leaves a massive 16,400 units unaccounted for.

Sales Data

Now, this discrepancy raises questions. Where did these “missing” scooters go? Are they sitting in warehouses, yet to be delivered? Or are these numbers being inflated to present a more optimistic financial picture?

Vahan Portal Sales Data

If Ola’s claims are indeed exaggerated, it could indicate financial mismanagement, misleading investors and potential customers.

Even the government has reportedly taken notice and is demanding an explanation.

Meanwhile, a subsidiary of the company, Ola Electric Technologies Private Limited, is currently facing a legal case from Rose Merta Digital Services over an unpaid loan of ₹22 crore.

Ola Electric has outright denied the allegations, even threatening legal action. The case is currently being heard by the National Company Law Tribunal (NCLT) in Bengaluru. Since it is a legal case, it could take years to conclude whether the allegation is true or false.

If the claims are proven true, it would indicate potential financial instability and dishonest accounting practices—a major red flag for investors.

The accounting fraud accusation is also a concerning one because this could mean that Ola is not just struggling financially but actively hiding the extent of its troubles.

Reality Check of Ola Electric Share

Ola Electric’s stock has already fallen 60% from its peak, but even after this decline, the company’s market capitalization remains at ₹25,000 crore.

To justify such a valuation, Ola Electric would need to show massive profitability and revenue growth. However, current numbers suggest the opposite:

– Revenue: ₹1,000 crore per year

– Losses: ₹560 crore per year

At this rate, Ola is not just unprofitable but burning cash at an alarming rate. The company’s plans to expand into electric bikes and cars will only increase expenses further, making profitability even harder to achieve.

Simply put, even after a major price drop, Ola Electric still appears overvalued given its financial struggles and management issues.

Mismanagement and Operational Chaos

While the EV market in India is booming, Ola Electric appears to be struggling due to internal mismanagement.

The company gained initial momentum but soon faced bad press due to scooter fires and quality issues. Instead of addressing these concerns seriously, CEO Bhavish Aggarwal was allegedly arguing with critics on X (formerly Twitter).

Many Ola showrooms were reportedly operating without proper trade licenses. Authorities in Punjab, Mumbai, and Pune have taken action, even shutting down some showrooms and seizing scooters.

These issues suggest that Ola Electric is more focused on rapid expansion rather than sustainable, well-managed growth. But when you are selling high-value consumer goods like electric scooters, trust and reliability matter more than aggressive marketing.

Contradictory Moves

Another head-scratching decision by Ola Electric is its recent announcement of firing 1,000 employees—this comes just weeks after the company claimed to have sold 25,000 scooters in a month.

Logically, if sales were skyrocketing, wouldn’t the company need more employees, not fewer? The contradiction raises doubts about Ola’s actual financial performance.

• If the company is indeed performing well, why the mass layoffs?
• If it is struggling, why claim record-breaking sales?

This conflicting narrative makes it difficult to trust Ola Electric’s official statements and raises concerns about the company’s financial stability.

Bhavish Aggarwal: India’s Elon Musk or Leadership Liability?

Many employees claim that Ola’s CEO Bhavish Aggarwal is trying to replicate Elon Musk’s leadership style in India.

For instance, Musk recently sent an email to DOGE employees asking them to explain their work from the previous week. Aggarwal reportedly sent a similar email to his employees.

However, while Musk has built multiple successful businesses, Aggarwal’s leadership style seems to be causing more internal problems than solutions. Employee dissatisfaction, operational chaos, and over-the-top public responses to criticism paint a picture of a CEO who is more focused on controlling the narrative than solving real business problems

A Company Embroiled in Crisis

While the company has made electric scooters more mainstream in India, its questionable business practices, financial struggles, and management issues threaten to derail its success.

For Ola Electric to survive and thrive, it must address these core issues transparently and effectively. Otherwise, the company risks becoming yet another cautionary tale of overambition, mismanagement, and broken promises in India’s startup ecosystem.

Disclaimer: We are not invested in the company neither it is a buy or a sell recommendation. It’s an analysis of the current scenario unfolding in Ola.