Ola Electric Shares Today Crash 6.7% After 81% April Rally; What Triggered the Fall?

After a 10-day-long rally, OLA Electric shares crashed in today's trading session. So far in April, the stock surged around 81% until today's crash. Ola Electric shares today are trading at Rs. 38.13, down by 6.73% from the previous close of Rs. 40.88.

The stock moved between Rs. 37.71 and Rs. 39.79 so far during the session, with heavy volume of about 21.93 crore shares.
Despite today's fall, Ola Electric has been one of the most active EV names in April, after reports earlier this month said the stock had surged sharply on improving sales and sentiment.

The stock is currently 46.60% down from the 52W High range, which is still wide at Rs. 22.25 to Rs. 71.25; that's how volatile the stock has been. The company is still loss-making, with EPS at -5.05 and a negative P/E of -7.55 as per BSE data.

Reason Behind Ola Electric Share Price Crash Today

The primary reason behind today's fall in Ola Electric shares appears to be profit booking after a sharp and rapid rally. After gaining over 80% in a short span, investors likely chose to lock in gains, leading to selling pressure. The market cap of the company stood at Rs 16,902.30 crore

What Triggered the Recent Rally?

Last week ola electric shares were rallying due to several positive developments and improving investor sentiment.
The company recently announced that its indigenous 46100 LFP battery cell is production-ready and will be deployed in its products starting next quarter.

Additionally, Ola Electric is reportedly planning to raise Rs. 2,000 crore for its battery arm, Ola Cell Technologies.
So factors like, Optimism around demand recovery, regulatory certifications, and progress in battery technology also led to the sharp rally in the Ola Electric stock.

EV Stocks in Focus After Delhi EV Policy Draft

Apart from Ola Electric, other EV stocks are also in focus today after the Delhi government released its draft EV policy, which is being seen as a structural positive for the sector.

The proposed policy is expected to accelerate EV adoption through incentives, restrictions on conventional vehicles, and a strong infrastructure push. Electric cars priced up to Rs. 30 lakh are set to receive 100% road tax and registration fee exemption until March 31, 2030, while strong hybrid vehicles may get a 50% exemption.

Additionally, only electric three-wheelers will be allowed for registration from January 1, 2027, and only electric two-wheelers from April 1, 2028. The policy also proposes that no new petrol or diesel vehicles will be added to delivery fleets, and all new government vehicles will be electric.

Further, the government plans to ensure that 30% of school buses are electric by 2030, and all new government buses transition to EVs.

This is mostly expected to benefit two-wheeler EV manufacturers, battery companies, and charging infrastructure players, strengthening the long-term outlook for the sector.

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