Ola Electric Stock Rally Continues for Second Day, Share Price Surges Over 12%; Know Reasons Before You Buy

Shares of Ola Electric, a prominent player in India's EV sector, surged sharply in Wednesday's session, despite facing a steep decline of 48% in 2025 and a 70% drop over the past year. This rally comes on the heels of a 9% gain on Tuesday. The stock closed at Rs 45.70 on BSE, marking an 8.8% increase after a substantial trading volume on NSE.

Ola Electric Share Price Today

As of 10:55 AM on August 20, shares of Ola Electric Mobility Limited were trading at Rs 50.49 on the National Stock Exchange (NSE), reflecting a sharp gain of Rs 5.66 or 12.63% from the previous close. The stock opened at Rs 45.40, higher than its previous close of Rs 44.83, and went on to hit an intraday high of Rs 51.50 during the morning trade.

Tuesday's surge was particularly notable for its heavy trading activity. Around 58 crore shares were traded yesterday, the highest volume recorded in over a month. This is significantly higher than the stock's 20-day average trading volume of 11 crore shares.

Additionally, 14.35 crore of those shares were marked for delivery (i.e., intended to be held rather than traded intraday). That's about 24% of the total shares traded on Tuesday and the highest delivery volume in two months, suggesting increased investor confidence and longer-term holding interest in the stock.

What's Driving Rally in Ola Electric's Share Price Continuously?

The rally comes as investor sentiment remains upbeat following recent announcements by founder Bhavish Aggarwal regarding the company's upcoming product launches and strategic growth plans. In an interview with Moneycontrol, Aggarwal revealed that Ola Electric's products equipped with the advanced 4,680 battery cell technology will be available to customers by Navratri.

Bhavish Aggarwal also confirmed that the company's Tamil Nadu manufacturing facility is operating at full capacity in preparation for the upcoming launch cycle.

Impact of GST Reforms on Ola Electric Stocks

Prime Minister Narendra Modi announced plans to reduce GST rates on various goods and services by Diwali. Discussions include lowering GST on small cars from 28% to 18%. HSBC Global Research suggests this could boost auto demand but warns of potential negative effects for EVs if states raise road taxes in response.

Nomura expressed concerns that reducing GST on internal combustion engine (ICE) vehicles might significantly affect EV adoption. The price gap between EVs, taxed at 5%, and ICE vehicles, taxed at 28% plus cess, would widen considerably. This policy uncertainty arises as Ola Electric faces financial challenges.

For the quarter ending June 30, Ola Electric reported a consolidated net loss of Rs 428 crore, a 23% increase year-on-year. Revenues halved to Rs 828 crore, while EBITDA losses expanded to Rs 237 crore, with margins declining to -28.6% from -12.5% the previous year.