Ola Electric Shares Crash Over 60% in 2025: Should Investors Hold, Sell or Wait?

Shares of Ola Electric Mobility Ltd remained under heavy pressure on Friday, extending their steep decline after founder and promoter Bhavish Aggarwal sold shares for the third consecutive trading session. The continued selling has weakened investor confidence and dragged the stock to a fresh 52-week low of Rs 31.54, marking one of the sharpest falls among newly listed technology companies in 2025.

So far this calendar year, Ola Electric shares have fallen nearly 63 per cent, making the electric vehicle maker one of the worst-performing tech listings of the year. The sustained decline has raised serious concerns among retail and long-term investors, especially as the stock now trades far below its IPO price of Rs 76.

Promoter stake sale weighs on sentiment

The recent sell-off has been largely attributed to promoter-level stake sales over a three-day period. Between December 16 and December 18, Bhavish Aggarwal sold a total of 9.62 crore shares through block and bulk deals on the NSE.

On December 16, around 2.60 crore shares were sold at an average price of Rs 34.99. This was followed by a sale of 4.19 crore shares on December 17 at Rs 33.96, and another 2.83 crore shares on December 18 at an average of Rs 31.90. In total, the transactions raised approximately Rs 324 crore and accounted for about 2.2 per cent of the company’s equity.

The sales, executed at prices significantly below the IPO level, intensified concerns over valuation, future growth visibility and promoter confidence.

Company clarifies reason for sale

Ola Electric later clarified that the stake sale was a one-time and limited monetisation of the promoter’s personal holdings. According to the company, the funds were used to fully repay a promoter-level loan of nearly Rs 260 crore.

Importantly, the company stated that the transaction resulted in the release of all pledged shares, which earlier accounted for about 3.93 per cent of total equity. Ola Electric said this development removes a major overhang on the stock and does not impact the company’s operations or long-term strategy.

Following the sale, the promoter group’s holding has reduced to approximately 34.6 per cent, from 36.78 per cent earlier.

What analysts advise investors

Brokerage opinions on Ola Electric remain mixed. Out of eight analysts tracking the stock, four have issued a ‘Sell’ rating, three recommend ‘Buy’, while one suggests ‘Hold’.

Ajit Mishra, SVP – Research at Religare Broking, noted that the stock is firmly in a downtrend and trading below all major moving averages. He said any recovery at this stage is likely to be a short-term technical bounce unless the stock decisively moves above the Rs 40–42 zone with strong volumes.

Amruta Shinde, Research Analyst at Choice Broking, highlighted that the stock has broken below key support levels, with the RSI slipping into oversold territory. She sees potential support in the Rs 30–28 range, while a break below Rs 28 could push the stock closer to Rs 25.

Investor outlook

For short-term traders, analysts advise caution due to persistent selling pressure and fragile sentiment. For long-term investors, experts recommend patience, suggesting that fresh exposure should be considered only after price stability and clearer signs of operational improvement emerge.

Despite the positive development of pledge removal, most market participants believe Ola Electric needs time to rebuild trust after its steep fall.