Ola Electric, the electric two-wheeler maker, saw a significant surge in its stock price, jumping over 10% after announcing a price reduction for its Roadster X+ 9.1 kWh electric motorcycle. The company’s market capitalization reached around $1.3 billion following this development.
Following a 14% intraday stock surge, Ola Electric revealed plans to increase the capacity of its gigafactory to 6 GWh, up from the initial 5 GWh target. This move comes after a notable 139% rise in E2W registrations in March, where the company experienced a surge to 9,496 units.
Ola Electric’s decision to slash the price of its flagship e-bike by over 31% to ₹1,29,999 is attributed to the scaling of manufacturing capacity for its 4680 Bharat Cell. The company emphasized achieving significant economies of scale in manufacturing, allowing it to reduce costs and pass on the benefits to consumers.
To manage the high demand that has outstripped supply capacity, Ola Electric is transitioning from open sales to a limited purchase window model. The e-bikes will now be available in specific time-bound slots and limited quantities.
Source: Inc42 Media