Ola Electric's Stock Soars as Company Unveils New Electric Motorcycles and Future Plans

Dream run continues for Ola as stock zooms another 20%

Shares of Ola Electric Mobility Ltd surged 20 per cent on Friday to hit the upper circuit limit on the BSE at ₹132.76 after the Bhavish Aggarwal-led EV maker announced its foray into the electric motorcycle segment with the launch of three models and two more in the pipeline. Investors in the IPO must be laughing all the way, as shares of the pure electric vehicle company jumped nearly 75 per cent against the IPO price of ₹76. According to HSBC Global Research, despite its conservative view on EV penetration in India along with other uncertainties, the global advisory firm believes Ola is still worth investing in. The company announced plans to integrate its own cells into its vehicles starting in Q1 FY26. Bhavish Aggarwal, Founder and CMD of Ola Electric, said two-thirds of the two-wheeler market comprises motorcycles. He emphasised that Ola's entry into the motorcycle segment will further accelerate EV penetration, building on its success in the scooter segment. Loss widens YOY Meanwhile, Ola Electric Mobility on Wednesday reported revenue from operations of ₹1,644 crore for Q1 -- up 32.3 per cent from ₹1,243 crore in the corresponding quarter last year. However, its consolidated loss widened to ₹347 crore (₹267 crore). But, on a sequential basis, the net loss narrowed from ₹416 crore. The June quarter has been a "good quarter" in terms of growth and profitability, Aggarwal said in a post-earnings call. The group has also rebranded its ride-hailing service as Ola Consumer announced a partnership with Open Network of Digital Commerce (ONDC) and launched automated warehousing solutions to cater to quick commerce requirements. Ola's artificial intelligence arm, Krutrim, will be manufacturing a set of chips called Bodhi for AI, Sarv for General Compute and Ojas for Edge. The company plans to design and produce India's first AI silicon chip by 2026, tailored for complex AI workload, it further said. Brokerages upbeat HSBC, which initiated Ola with a Buy call and a target price of ₹140, said: Ola is India's market leader in electric scooters (e2Ws) and the country's flag-bearer for EVs. That's because not only did Ola sell 49 per cent of all e2Ws in 1QFY25, but it also aims to build most of the required EV parts in India, especially the all-important battery, it said. "Ola's goto-market and localisation efforts are noteworthy and should attract investors looking to play the electrification theme in India. Admittedly, there are many concerns too - first among those is EV penetration remains slow and gradual. Competition also looks set to remain intense, especially from incumbents, while the outlook for regulatory support is uncertain and there are battery manufacturing risks," it added. HSBC used a DCF methodology to value Ola Electric. "We use a WACC of 10 per cent and a long-term growth rate of 7.5 per cent . Our target price implies FY28e price/sales of 2.9x and an EV/EBITDA of 39x. We also provide sensitivity matrix to gauge the sensitivity of Ola's valuation to different parameters." Key risks Slower-than-expected penetration of e2Ws in the country, battery plant issues including failure to expand capacity, loss of market share due to increasing competition, negative movement in battery prices and removal of incentives/subsidies by the government are key risks for its bullish call, the foreign brokerage said. SHARE Copy linkEmailFacebookTwitterTelegramLinkedInWhatsAppRedditPublished on August 16, 2024

Ola Electric shares surge 20%; hit upper circuit limit - Times of India

NEW DELHI: Shares of Ola Electric Mobility Ltd surged 20 per cent on Friday to hit the upper circuit limit after the Ola Group announced its foray into the electric motorcycle segment with the launch of three models and two more in the pipeline. The company also reported a jump in revenue from operations for the April-June quarter of 2024-25. The stock jumped 19.99 per cent to Rs 132.76 -- its highest trading permissible limit for the day -- on the BSE. On the NSE, shares of the firm soared 20 per cent to Rs 133.08 -- its upper circuit limit. The company's market valuation stood at Rs 58,558.18 crore. Shares of the Bhavish Aggarwal-led electric two-wheeler company made their market debut on August 9. From the issue price of Rs 76, the stock is currently up nearly 75 per cent. Ola Electric Mobility on Wednesday reported a jump in revenue from operations in the April-June quarter of FY25 at Rs 1,644 crore against Rs 1,243 crore revenue recorded in the same quarter of the previous fiscal. The June quarter has been a "good quarter" in terms of growth and profitability, Chairman and CEO Bhavish Aggarwal said in a post-earnings call. Meanwhile, the group has rebranded its ride-hailing service as Ola Consumer announced a partnership with Open Network of Digital Commerce (ONDC) and launched automated warehousing solutions to cater to quick commerce requirements. Besides, Ola said it will bring to the market the first indigenously designed and developed family of chips for AI, general and Edge computing by 2026 under its Krutrim venture. Speaking at Sankalp 2024 - Ola's annual launch event on Thursday, Ola Founder Bhavish Aggarwal said currently, two-thirds of India's two-wheeler market consists of motorcycles, and it was imperative for the company to enter the segment. "We have already been successful in accelerating the EV adoption in the scooter segment, and with our futuristic portfolio of products, we are now focused on supercharging the EV penetration through our motorcycles," he said. Aggarwal also said Ola's indigenously developed 'Bharat 4680' cell and battery pack will be integrated with its own vehicles starting in the first quarter of FY26. The company showcased its all-new Gen-3 platform for two-wheelers. "Coupled with the integration of our cells in our vehicles starting early next year, we are determined to chart a new course for mass EV adoption across India," Aggarwal added.

India's Ola Electric launches electric motorcycles days after going public (Aug. 15)

POCHAMPALLI, TAMIL NADU, - Indian electric vehicle maker Ola Electric Mobility launched a new series of motorcycles on Thursday, days after it went public, expanding into an untapped segment in the world's second-largest two-wheeler market. India's electric two-wheelers are almost entirely scooters, with more expensive motorcycles accounting for barely 1% of overall two-wheeler EV sales. Smaller EV motorcycle makers such as Revolt and Ultraviolette Automotive - backed by Indian two-wheeler maker TVS and chip company Qualcomm - have struggled with low volumes in the price-sensitive market. Ola Electric, which raised $734 million in its initial public offering last week, launched three motorcycle variants and claimed that the entry-level "Roadster X" had a range of 200 kms on a single charge. The "Roadster Pro" variant has features such as advanced driver assistance systems and internet-enabled AI technologies, the company said at the launch event. Electric motorcycles have had greater success in China and Taiwan, helped by government subsidies and a vast EV charging network. However, high upfront costs and range anxiety have been hurdles for growth in other markets. Ola Electric accounted for 39% of two-wheeler EV sales in the country in July, per government data. Revenue surged 90% in the year March 2024, but it is yet to turn a profit. In April, it slashed prices of the cheapest of its three scooter models to boost demand after the government reduced EV subsidies, and hopes to cut costs by using its own batteries next year. The company also plans to refine metals used in its cells in house in the next three to four years, Chairman Bhavish Aggarwal told Reuters on the sidelines of the event, as part of its profitability targets.

India's Ola Electric launches electric motorcycles days after going public

POCHAMPALLI, TAMIL NADU (Reuters) - Indian electric vehicle maker Ola Electric Mobility launched a new series of motorcycles on Thursday, days after it went public, expanding into an untapped segment in the world's largest two-wheeler market. India's electric two-wheelers are almost entirely scooters, with more expensive motorcycles accounting for barely 1% of overall two-wheeler EV sales. Smaller EV motorcycle makers such as Revolt and Ultraviolette Automotive - backed by Indian two-wheeler maker TVS and chip company Qualcomm - have struggled with low volumes in the price-sensitive market. Ola Electric, which raised $734 million in its initial public offering last week, launched two motorcycle variants and claimed that the entry-level "Roadster X" had a range of 200 kms (124.27 miles) on a single charge. The "Roadster Pro" variant has features such as advanced driver assistance systems and internet-enabled AI technologies, the company said at the launch event. Electric motorcycles have had greater success in China and Taiwan, helped by government subsidies and a vast EV charging network. However, high upfront costs and range anxiety have been hurdles for growth in other markets. Ola Electric accounted for 39% of two-wheeler EV sales in the country in July, per government data. Revenue surged 90% in the year March 2024, but it is yet to turn a profit. In April, it slashed prices of the cheapest of its three scooter models to boost demand after the government reduced EV subsidies, and hopes to cut costs by using its own batteries next year. The company also plans to refine metals used in its cells in house in the next three to four years, Chairman Bhavish Aggarwal told Reuters on the sidelines of the event, as part of its profitability targets. (Reporting by Akash Sriram and Nandan Mandayam in Pochampalli; Editing by Janane Venkatraman)

In-House Battery Cell, New Bike Launches, AI Chips: Know Ola's Bhavish Aggarwal's Vision For Company - News18

Ola founder Bhavish Aggarwal is confident on the electric vehicle company's outlook going forward on the back of Ola's flagship 'Bharat Cell', new launches, and the government's clean energy push. Even as Ola Electric's shares have given a significant 60 per cent gain since its listing last week despite pessimism towards its IPO, the company's founder Bhavish Aggarwal is confident on the electric vehicle company's outlook going forward on the back of Ola's flagship 'Bharat Cell', new launches, and the government's clean energy push. "We are the largest two-wheeler EV company in the world, excluding China. In the overall electric vehicle market, Ola Electric is currently the fifth-largest in the world by market capitalisation ($5.68 billion), following Tesla, Rivian, VinFast Auto, Lucid Motors; and fourth-largest by revenue (0.68 billion) within just three years. One day, we will be No. 1," Aggarwal, who is the chairman and MD of the company, said on August 15 during the company's annual conclave 'Sankalp' at Krishnagiri, Tamil Nadu. Indigenous Battery Cell The company has set up India's first gigafactory to manufacture battery cells at Krishnagiri, Tamil Nadu. Out of the 5-GWh installed capacity, 1.5 GWh is already live. The company plans to expand it to 100 GWh capacity by 2030 in three phases, with the first one with 5 GWh already installed, the second phase for 20 GWh will be set up by 2026, and finally, the third phase for 100 GWh by 2030. "We have developed our own 4680 Battery Cell, the 'Bharat Cell'. It is a bigger one as compared to the existing ones in the market. This is the 5G of cells. It is 5x energy and charges 1.5x faster, with over 70 patents," Bhavish Aggarwal said. The company plans to use this in-house battery cell in Ola's products from April 2025 (Q1 FY26), the company's founder said, while demonstrating an Ola scooter running on the 4680 Battery Cell. Apart from vehicles, this indigenously developed battery cell pack can also be used to create microgrids across the country to supply very cheap electricity to villages, and as a power back-up for homes. Electric Two-Wheeler New Launches After having established as a leading EV scooter player in the country, Ola Electric Mobility on August 15 also launched its bikes -- the Roadster series. The company has launched three models in bikes -- Roaster X, Roadster, and Roadster Pro -- with prices starting at Rs 74,999, Rs 1,04,999, and Rs 1,99,999 respectively. Deliveries of these bikes will begin from Q4FY25 onwards. Roadster Pro delivery will begin in Q4FY26. Bhavish Aggarwal said Ola will bring to the market the first indigenously designed and developed family of chips for AI, general computing and Edge by 2026 under its Krutrim venture. He said its AI chatbot Krutrim will design and produce India's first AI silicon chip by 2026 that is custom-built for complex AI workloads. The chip will enable the development of faster and more efficient AI systems, marking a major milestone in achieving India's technological sovereignty The Ola group on August 15 also rebranded its ride-hailing service as 'Ola Consumer', announced a partnership with ONDC and launched automated warehousing solutions to cater to quick commerce requirements. He said Ola is fulfilling the government's vision of clean energy, for which PM Narendra Modi has announced various programmes. What Analysts Say Ola Electric Mobility's shares have given over 60 per cent gains in a week since listing on August 9. It has received interest from various quarters. The company has also received its first 'buy' recommendation, with brokerage firm HSBC giving a price target of Rs 140. HSBC said EV manufacturing costs may fall significantly by FY27/28, while internal combustion engine (ICE) scooters may go up due to emission standards. It added that the barrier to e2-wheelers switching may fall but Ola's battery venture may be a success. Saji John, senior research analyst at Geojit Financial Services, said Ola is likely to act as a catalyst for boosting investors' confidence and could help accelerate the growth and adoption of electric two-wheelers across the country. It is the only automaker in India approved for both PLI schemes for advanced automotive technology and cell chemistry batteries, said . "Despite profitability challenges and a loss in FY24, the company is poised to enhance profitability in the long term through improved scalability and by vertical integration. We expect the debut will encourage other players to unlock their value and validate their presence in EV expansion," he said. In its recent report, Nomura said motorcycles have been a tougher segment for electrification and the last few launches including Tork, Revolt, Ultraviolette and more have not been successful. However, it estimates 25 per cent on EVs in two-wheelers by FY30. "With multiple price points and range options from Ola, it would be interesting to watch how customers respond to them," Namura added.

Ola Electric launches electric motorcycles, to integrate own cells in EVs

Ola Electric introduced three electric motorcycles, including the Roadster, Roadster X, and Roadster Pro. Deliveries for the Roadster and Roadster X will begin in January 2025, while the Roadster Pro will be available by Diwali 2025. Ola also announced AI shopping co-pilot integration and plans for automated dark stores and fulfilment centres.Ola Electric on Thursday launched three electric motorcycles and announced the integration of its battery cells in its vehicles. The company launched Roadster, Roadster X and Roadster Pro electric motorcycles, with prices starting from Rs 74,999, Rs 1,04,999 and Rs 1,99,999, respectively. It also teased two upcoming motorcycles - Sportster and Arrowhead. At the annual launch event, founder Bhavish Aggarwal said that deliveries of Roadster and Roadster X will commence in January 2025 while bookings will start today. Deliveries of the most expensive of all three, Roadster Pro, will start during Diwali 2025, Aggarwal said. "Today, two-thirds of India's two-wheeler market consists of motorcycles, and with Ola's entry into this segment, EV penetration is poised to further accelerate in the Indian 2W segment," he said. The company also announced AI shopping co-pilot, which will help users connect with social media and other apps, creating a cohesive and integrated shopping experience across all platforms. Besides, the company also plans to have fully automated dark stores and fulfilment centres. "Ola Consumer is looking at revolutionising the warehousing space that supercharges the commerce supply chain. The company already has partnerships with several large FMCG and D2C brands including ITC, Marico and Bombay Shaving Company for efficient and automated warehousing operations, elevating logistics to reduce manual wastage and high costs of storage," it said in a release. ET had first reported about Ola's quick commerce plan on August 8. Earlier this month, on August 9, Ola Electric made a flat debut on the exchanges. The company's share listed on the NSE at Rs 76. The stock, however, surged 20% for two straight days, before moderating.

Ola Electric rolls out range of e-bikes; announces quick commerce foray

Ola Cabs rebranded itself as Ola Consumer to go beyond ride-hailing and also launched fully automated dark stores for use by ONDC. On Independence Day, Ola rolled out Ola Pay to pay for rides, food and groceries through UPI on the Ola app, while sister firm Krutrim promised to launch an in-house designed AI chip.The Ola group of companies made a slew of product announcements, including electric bikes, quick commerce dark stores and computing chips, during their annual event "Sankalp" on Thursday. Listed electric scooter maker Ola Electric announced its first-ever range of electric motorcycles, called the Roadster. The Roadster has been launched in three different variations -- Roadster Pro, Roadster and Roadster X -- at introductory prices of between Rs 74,999 to Rs 2,49,999. All three models are open for registration. The cheaper Roadster X and Roadster models, with battery power ranging between 2.5 KwH (kilowatt hour) and 6 Kwh, will begin deliveries in the final quarter of the fiscal year 2025. The premium Roadster Pro, with 8 KwH and 16 KwH variants, will be available from Diwali 2025, i.e. around November 2025, founder Bhavish Aggarwal said. "65% of the overall two-wheeler market is motorbikes, and though electric penetration in the scooter category has already reached 21%, in the bike category it is still at 1%... it naturally makes sense for us to disrupt bikes next," Aggarwal said. The vehicles will compete with the likes of TVS Motor-backed Ultraviolette Automotive, which is looking to scale sales up to 5,000-6,000 vehicles by the end of FY25 and is set to begin sales of its flagship F77 range of bikes in European markets, ET had reported in April. Ola Electric's sister firm, Ola Cabs, on Thursday rebranded itself as Ola Consumer to expand its services beyond ride-hailing. The firm also launched fully automated dark stores for usage in the government-backed Open Network for Digital Commerce (ONDC). The dark stores will be available from the end of the calendar year 2024 and will be offered to direct-to-consumer (D2C) brands and other sellers on the ONDC platform. "We're not looking to sell to or compete with the existing quick commerce players," Aggarwal said. ET had reported on August 8 that Ola was planning on setting up its own dark stores and launching its own Unified Payments Interface (UPI) offering for consumers. On Thursday, Ola also launched Ola Pay, which allows payments for rides, food and groceries through UPI on the Ola app. The automated dark stores will be placed inside container-like structures, designed and manufactured in-house by Ola, Aggarwal said. The dark stores will be able to store 1.2 lakh items with automated storage and restocking, serving 7,000-10,000 orders per day at the rate of 60 seconds per order, he added. With this, Ola Consumer will be joining a red-hot quick commerce sector that already has multiple well-capitalised players like Zomato-owned Blinkit, public markets-bound Swiggy Instamart and Tata Digital-backed BigBasket Now. On August 12, ET reported that Zepto is set to raise $310 million in funding at a $5 billion valuation, just over a month after it raised $665 million from a clutch of investors at a valuation of $3.6 billion. Ecommerce major Flipkart is also set to kick off its quick commerce foray with its Flipkart Minutes product on Big Billion Day. Ola will also be offering automated warehousing services to ONDC participants and is working with brands like ITC, Marico and Bombay Shaving Company for the same. It also re-introduced ride-sharing on Ola Cabs and started a new loyalty programme called Ola Coins. Krutrim AI, the sister firm of Ola Electric and Ola Consumer, on Thursday said it would launch an in-house designed AI chip called Bodhi 1 by 2026, and a superior AI chip called Bodhi 2 by 2028. The firm will also launch a non-AI computing chip called Sarv 1 by 2026, as well as an edge AI chip called Ojas. Ojas will be used for computation on devices like phones, the Internet of Things (IoT), automotive, and other mobile devices. Ola is partnering with microprocessor firm Arm to design its chips and with hardware provider Lenovo for its data centres, Aggarwal said. "We are in discussions with a number of tier 1 foundries in Taiwan and South Korea to manufacture our chips," he added.