Ola Electric Share Price Soars Nearly 30% in Just 5 Days – What’s Driving the Rally?

If you’ve been following Ola Electric’s stock lately, you probably noticed something remarkable. In just five trading sessions, the shares jumped close to 30%, moving from around ₹48.5 on August 25 to about ₹62.5 by September 1. That’s quite a swing in such a short time, and it has caught the attention of both retail investors and market analysts.

Let’s break down what happened, why the rally took place, and what it could mean going forward.

The Numbers at a Glance

Here’s a quick look at the last five trading sessions:

• Aug 25: ₹48.57 (+2.9%)
• Aug 26: ₹50.82 (+4.6%)
• Aug 28: ₹54.84 (+7.9%)
• Aug 29: ₹54.05 (–1.4%)
• Sep 1: ₹62.48 (+15.6%)

That’s a steady climb, capped by a double-digit surge on the last day. In total, the stock delivered close to a 30% gain in less than a week.

What’s Fueling This Rally?

The sharp rise isn’t random. Several key developments have come together to push Ola Electric higher:

1. PLI Certification for Gen 3 Scooters

The biggest trigger has been Ola Electric’s confirmation that its Gen 3 scooter lineup is now certified under the government’s Production Linked Incentive (PLI) scheme. This means Ola is eligible for incentives of 13–18% on sales value until 2028, which could directly improve margins and profitability. Since Gen 3 scooters make up more than half of Ola’s sales, the impact could be meaningful right from the current quarter.

2. Market Sentiment and Technical Breakout

The rally isn’t just about news. On the charts, Ola Electric has broken out of a long downtrend with strong trading volumes. Technical analysts say the stock is showing a “constructive” pattern with higher highs and higher lows, a classic bullish signal. Volumes have been almost five times the average on peak days, which suggests this isn’t only short-term speculation but also some long-term buying interest.

3. Strategic Moves and Future Plans

Beyond the PLI scheme, investors were encouraged by a few other announcements:

• Plans to launch a new electric bike soon.
• Efforts to manufacture batteries in-house, reducing reliance on costly imports of rare earth materials.
• Management’s focus on regaining market share from rivals like Ather and TVS.
• A step toward being EBITDA positive, a sign that the company’s core operations are improving.

The Bigger Picture

Now, it’s important to balance the excitement with reality.

• Still Below IPO Price: Even after the 30% rise, Ola Electric trades below its IPO price of ₹76.
• Losses Remain: The company reported a ₹428 crore net loss in the June quarter, and revenues halved year-on-year.
• Stiff Competition: Rivals like Ather Energy and TVS Motor are aggressively expanding, and in some periods, even outselling Ola.
• Volatility: The stock is still down nearly 48% over the last year. So while the rally is impressive, it doesn’t erase the rough patch Ola has been through.

Should Investors Jump In?

Analysts are divided:

• Optimists believe this rally is just the beginning, with PLI benefits, new products, and battery manufacturing giving Ola a solid growth runway. Some see near-term targets of ₹70 or higher if momentum holds.
• Cautious voices warn that the stock is near “overbought” territory on technical charts, which could mean a short-term pullback. Plus, the fundamentals—losses, competition, and supply chain challenges—haven’t disappeared overnight.

Final Word

Ola Electric’s nearly 30% surge in five days is a reminder of how quickly market sentiment can shift when positive news aligns with strong technicals. The PLI certification has given investors fresh hope that the company can improve profitability, while product and strategy announcements hint at a more solid future.

Still, the road ahead isn’t without bumps. For investors, this might be an exciting story to watch, but also one that requires caution, patience, and a close eye on execution.