Ola Electric’s shares hit a six-month high after surging nearly 15% on Monday. This marks a 55% rally over the past three weeks.

Just a few months ago, Ola Electric’s stock had crashed more than 70% from its highs. Fast forward to now, and the same stock has surged over 50% in just a few days, noted SEBI-registered analyst Mayank Singh Chandel.

What Changed?

The turnaround is driven by a mix of factors, Chandel said. Big investors stepped in, with foreign institutional investors increasing their stakes, mutual funds buying aggressively, and nearly 10 bulk deals taking place in August alone.

Government support also played a key role. Ola’s Gen 3 scooters received PLI certification, making them eligible for incentives until 2028. Since these models account for more than half of Ola’s total sales, the certification translates into a direct profit advantage.

The company also regained market share, climbing back to the No. 2 spot in EV two-wheeler sales last month.

Fundamental Issues

However, not everything is rosy, Chandel added. Ola continues to post losses, revenues remain under pressure, and the stock is still trading well below its IPO price. These fundamentals highlight the gap between recent investor optimism and the company’s financial reality.

For now, the rally is undeniable, and sentiment has shifted in Ola’s favor. But whether this momentum leads to a sustainable comeback remains to be seen, the analyst said.

Stock Watch

Ola has been in the retail spotlight recently. On Monday, it was among the top 3 trending stocks on Stocktwits. Retail sentiment remained ‘extremely’ bullish on the platform, amid ‘high’ chatter.

While the stock has shed nearly 29% year-to-date, it has seen an almost 50% growth in the past month, following the rally.

Peer Watch

Shares of Ather Energy rose 13.7% to ₹ 511.70 on Monday after the company launched EL, a next-generation scooter platform, during Ather Community Day 2025.

Retail sentiment for Ather remained ‘neutral’ despite ‘high’ message volumes.

Year-to-date, Ather’s stock has gained more than 65%, significantly outperforming Ola.

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