While the broader market indices on Thursday remained under pressure due to uncertainty arising out of the fragile ceasefire agreement, the stock of Ola Electric Mobility defied the trend on the bourses.
The stock of the electric scooter manufacturer jumped over 17 percent during the trade on the back of the company announcing the development of a Lithium Iron Phosphate (LFP) cell.
Earlier in the day, the stock opened almost flat at Rs 30.49 compared to its previous close of Rs 30.29 apiece.
The company on Tuesday had informed the exchanges that it had developed an in-house LFP cell, which is expected to reduce the production cost of its scooters.
“Ola Electric today announced the readiness of its in-house developed Lithium Iron Phosphate (LFP) cell, marking a key milestone in its mission to accelerate electric mobility and build a full-stack energy ecosystem,” the company said in a statement on Tuesday.
The cell has been developed as part of Ola’s vertically integrated battery innovation efforts. The new 46100 format LFP cell is bigger than the current NMC 4680 Bharat Cell and will begin entering Ola’s products starting next quarter.
Despite a steep surge in price, the stock is still at a discount of over 50 percent compared to its 52-week high of Rs 71.24 apiece.
The company has been consistently reporting a decline in scooter sales and vehicle registrations, leading to losing the top position in the electric scooter market in the country.
It posted a revenue of Rs 470 crore in the December quarter, a decline of 55 percent. Vehicle sales also plummeted by 61 percent to just 32,680 units during the same period.
The company has also faced criticism for poor service to customers and falling behind targets set for its gigafactory.
This has also led the company to face the ire of the government in the form of penalties under the production-linked incentive scheme for cell manufacturing.
The Ola Gigafactory currently has a capacity of 2.5 GWh, and the company is looking to scale it up to 6 GWh.
