Shares of Ola Electric Mobility Ltd experienced a significant rally in Wednesday's trading, climbing 12.02 percent to reach a high of Rs 42.32. The stock was last observed trading 11.17 percent higher at Rs 42. This surge comes on the heels of the company's recent announcement regarding its new S1Z electric scooter range.
S1Z Scooter Debuts with Indigenous Technology
Towards the end of last month, the electric vehicle (EV) manufacturer commenced bookings for its S1Z electric scooter range, with prices beginning at Rs 79,999. Ola Electric has positioned the S1Z as its most affordable scooter offering, aiming to make EVs more accessible to a wider market.
Ola Electric CEO Bhavish Aggarwal highlighted a key innovation in the S1Z range: its proprietary Bharat Cell LFP technology. Aggarwal stated that this is the company's first scooter line to be powered by these indigenously developed cells. The Bharat Cells are a product of Ola's Battery Innovation Centre and are manufactured at its Gigafactory located in Tamil Nadu.
"The S1Z is the first scooter range in India powered by our indigenous Bharat Cell LFP technology, developed at our Battery Innovation Centre, and manufactured at our Gigafactory in Tamil Nadu," Aggarwal explained. He emphasized that Ola has full control over the cell production, backed by 426 patents. This move, according to Aggarwal, marks a new era for electric vehicles with LFP cells, targeting the largest segment of the EV market.
Aggarwal also noted that battery costs constitute a substantial portion of an EV's overall price. By manufacturing LFP cells in-house, Ola Electric aims to significantly reduce this cost, potentially impacting market competitiveness. The company claims the S1Z offers an impressive range of up to 301 km under IDC testing.
Analysts Offer Market Outlook
Following the stock's performance and the new product launch, market analysts have weighed in on Ola Electric's prospects.
Kranthi Bathini, an Equity Strategist at WealthMills Securities, commented on the company's future. "Ola Electric remains a calculated risk at present. The key is to see how the company improves its revenue parameters and profitability, which will be crucial for its medium- to long-term prospects. Investors with a high-risk appetite can continue to hold the stock," Bathini advised.
Vishnu Kant Upadhyay, AVP of Research at Master Capital Services, provided a technical perspective for investors. "From a technical standpoint, existing investors can hold on to the stock until it holds above Rs 34. Fresh positions should only be considered if the counter sustains above Rs 41. Once it trades above Rs 41 level, one can expect a target of Rs 60-62-odd level. On the lower side, Rs 34 would act as immediate support," Upadhyay stated.