In recent times, there has been a good rise in the shares of Ola Electric. The company's shares closed at Rs 40.9 on BSE on Friday after 3 consecutive days of rise. Which has doubled from its respective 52 weeks lower level. Which was made by the company on March 2 with Rs 21.21. Now the biggest question is whether the fortunes of Ola Electric shares have completely changed. Or the reason is something else. Let us try to understand it in detail…

What is the reason for this rise?

Several positive updates and improving data suggest that this rally may be due to real progress. Let us try to understand some of the major reasons…

In-house LFP battery cell

For most of March, the stock remained stuck in the range of Rs 2225. Then on April 7 an important announcement came. Ola Electric said that its in-house Lithium Iron Phosphate (LFP) battery cell is now ready for production. This is a big step towards manufacturing everything from batteries to vehicles within the company. The new 46100-format LFP cell is larger than its predecessor, the NMC-based 4680 Bharat Cell. Simply put, this could mean better scale, lower costs, and greater adoption of both electric vehicles (EVs) and energy storage. This is the kind of update that signals long-term intentions, not just short-term noise.

PLI for Roadster

A few days ago, on April 3, Ola Electric crossed another important milestone. It got Production Linked Incentive (PLI) certification for its Roadster X+ 4.5 kWh variant. This approval, received under the PLI-Auto scheme of the government, strengthens its manufacturing capabilities. More importantly, it shows a company's compliance with regulations and eligibility for incentives—something that can help margins and growth over time.

Vehicle registration doubled

There has also been a clear improvement in demand. Vehicle registration increased to 10,117 units in March, which is more than double the 3,973 units in February. This is a tremendous comeback after a weak phase. By the end of March, daily orders had exceeded 1,000 units. This shows that buyers are coming back, at least it seems for now.

better service

After facing constant criticism over service quality, the company finally seems to be taking action. It says it has improved parts availability and diagnostics. According to the company, now more than 80 percent of the vehicles are serviced on the same day. Additionally, it has also launched several exciting offers for customers—like service guarantee, free cab rides in case of delays, buyback options and extended warranty. The clear objective of these steps is to win back the trust of customers.

flight after a bumpy ride

The recent rise in the share price has come after going through a difficult period. Since listing at Rs 76 in August 2024, the share price had fallen significantly. On the day of listing, it had increased by 20 percent and reached Rs 91.2, due to which the market capitalization of the company at that time was Rs 40,218 crore. Since then, the valuation of the company has almost halved and now its market cap is around Rs 18,040 crore. Concerns raised about service related problems, product quality and declining market share had a negative impact on investor morale. According to ET's February report, the company has also limited its retail expansion plans. Just a year after talking about expanding its retail network to 4,000 stores across the country, the company now aims to reduce its store count to around 550.

Now what next?

Despite this momentum, caution is still needed. Trendlyne data suggests that the stock may be 'overbought' and its valuation also appears very high. This increases the possibility of the share price falling again. So yes, this time could be like a stroke of luck for Ola Electric. But this time, it doesn't seem like it's just a game of luck. Behind this, signs of real change are also visible. Now only one question remains: will the company be able to maintain this momentum and reach its previous heights again?