Ola Electric is beaten down today, very close to its 52-week low of Rs.53.57. The stock has slipped almost 4.5% to an intraday low at Rs.54.02 and continues to trade around the same levels. Its 20% UC for the day is at Rs.45.24.

The reason for this? There is an unconfirmed news reported by Bloomberg that the company has flouted rules under India’s Motor Vehicles Act for flouting rules and also got warning letter from the Govt for this.

News is that the company expanded to approximately 4,000 physical locations since 2022. However, investigations revealed that over 95% of these showrooms lacked the necessary trade certificates mandated by India's Motor Vehicles Act. In response to customer complaints, transport authorities across various states conducted raids, closed showrooms, seized vehicles, and issued show-cause notices to Ola Electric.

Earlier this month, news came in of the company grappling with high costs, weak demand, and significant discounts, leading to job cuts. Reports indicate that Ola Electric is laying off more than 1,000 employees and contract workers as it seeks to prioritize profitability.