Ola Electric’s 78% Drop from Peak Erases Rs 8,000 Crore for SoftBank, Rs 548 Crore Loss for Temasek-Backed Fund
In December 2025, Ola Electric became a fresh warning sign for stock market investors. The company’s share price fell nearly 78% from its peak. This sharp fall erased thousands of crores in value within months. Big global investors felt the hit first. SoftBank lost close to ₹8,000 crore on paper. A Temasek-backed fund also saw its investment shrink by more than ₹500 crore.
This drop did not happen overnight. It came after weak sales numbers, rising competition, and growing doubts about long-term profits. Ola Electric was once seen as a leader in India’s EV boom. Its early success created high hopes. But markets change fast. Expectations shift even faster.
For many investors, this fall raises tough questions. Is this only a short-term panic? Or is it a deeper problem? Ola Electric’s journey now reflects a larger truth. Growth stories must survive real numbers. And hype alone cannot support a stock forever.
Ola Electric: The Numbers Behind the Crash
Ola Electric’s stock has lost about 78% of its value from its peak level of around ₹157.4 per share to roughly ₹34.67 as of December 2025. This steep slide has wiped out big wealth on paper for major investors. SoftBank’s investment arm, SVF II Ostrich, saw nearly ₹7,956 crore erased from its stake. At the same time, the Temasek-backed MacRitchie fund suffered a notional loss of around ₹548 crore.
Even before this fall, the wider stock market pressure was clear. Ola Electric’s shares had been trending downward, including multiple 52-week lows and a year-to-date drop of over 60%, reflecting persistent sell-offs.
These losses show how sharply investor sentiment can shift in fast-moving sectors like electric vehicles. What once looked like a high-growth bet is now a stock watched for signs of further weakness or potential recovery.
What’s Driving the Ola Electric Share Price Freefall?
A big reason behind the collapse is weak financial performance. Ola Electric’s revenue and deliveries have dropped sharply. The company has cut its FY26 revenue and volume outlook, forecasting only 220,000 units sold compared to earlier expectations of up to 375,000 vehicles.
Sales figures from recent quarters tell the same story. Revenue nearly halved in one quarter, and losses persisted despite cost cuts.
Beyond numbers, Ola’s market share has shrunk sharply. Once a leader in electric scooters, its share fell to about 20-23% in early FY26, down from nearly half of the segment a year earlier. At the same time, rivals like TVS Motor and Bajaj Auto grew volumes, pushing Ola further back in rankings.
Promoter and insider selling has added pressure too. In mid-December 2025, founder Bhavish Aggarwal sold shares worth over ₹230 crore in open market transactions, which coincided with a fresh stock price slide to new lows around ₹31.11. Overall, the trend shows a mix of disappointing sales, shrinking influence, and negative sentiment dragging the stock down.
Investor Impact: Institutions and Retail
The sharp drop has hit large institutional holders hard. For SoftBank, the loss isn’t just on paper. Years of investment tied up in Ola Electric now show much lower returns amid broader pressure in tech and growth categories.
Retail investors have also felt the pain. Many bought shares around or above the IPO price, only to watch values slide lower. Analysts have suggested caution, as high volatility and unclear earnings paths make short-term bets risky.
Some market observers argue that the pessimism has gone deep enough that very risk-tolerant investors could look at long-term opportunity. But most advice leans toward monitoring fundamentals and avoiding emotional decisions in a sharply falling market.
Strategic Missteps and Market Lessons
Part of the story behind the collapse is a gap between early expectations and operating reality. Ola Electric expanded quickly, opening thousands of stores and building hype around its scooters. Yet sales did not keep pace with these investments.
Ola also faced operational challenges earlier in 2025. Credit rating agency Icra downgraded its debt in May, citing slow sales and heavy cash burn.
Meanwhile, quality and service issues have been widely discussed, with customers highlighting delays and complaints online. This eroded some confidence in the brand, even as investments continued.
Together, these factors underline a lesson for high-growth tech and EV firms: scaling rapidly without clear profitability or strong execution can create deep investor skepticism.
Can Ola Electric Rebound?
There are signs Ola is trying to stabilize. The company clarified in December 2025 that a recent promoter share sale was meant to repay debt and release pledged shares, rather than signal a loss of faith.
Analysts also note that Ola plans new product launches, including an electric motorcycle range, which could open a larger market segment beyond scooters.
However, competition remains fierce. Legacy automakers and newer EV players continue to push ahead with strong dealer networks and growing volumes. Ola’s path back to growth depends on execution, cost discipline, and improving sales momentum.
Final Thoughts
Ola Electric’s steep slide from peak has been a stark reminder that stock prices reflect both numbers and sentiment. Major investors like SoftBank and Temasek have seen large valuation losses. At the same time, operational weaknesses and market competition raised serious questions about sustainability. While hopes for a rebound exist, especially with new product strategies, the company’s recovery is far from certain. Markets now look closely at fundamentals, not just future promise, before rewarding high-growth stocks like Ola Electric.
Frequently Asked Questions (FAQs)
Ola Electric shares fell because its sales and revenue have dropped and losses stayed high in 2025. The stock also lost value as investors grew unsure about its future.
As of December 2025, SoftBank’s investment in Ola Electric lost nearly ₹8,000 crore in value after the share price slid about 78% from its peak.
Ola Electric stock is still risky. The company has weak sales and losses. Many experts say to watch its performance before buying.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
