Shares of Ola Electric Mobility Ltd saw a significant jump on Monday, gaining 5.49% to close at Rs 41.12 on the BSE. This surge follows the company's announcement of opening bookings for its S1Z electric scooter range, priced competitively from Rs 79,999, positioning it as their most accessible model.
Despite this recent uptick, which has seen Ola Electric shares gain 70.84% over the past six months, the stock is still trading 34.09% lower compared to its price 12 months ago.
S1Z Scooter Features Indigenous Battery Technology
The new S1Z electric scooter is notable for being the first in Ola Electric's lineup to feature its indigenous Bharat Cell LFP (Lithium Ferro Phosphate) technology. Ola Electric CEO Bhavish Aggarwal highlighted that these cells were developed at the company's Battery Innovation Centre and are manufactured at its Gigafactory 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. Our cells are fully built by Ola, with 426 patents to back them. This is the beginning of a new era in electric vehicles with LFP cells, that will address the largest segment of this market," Aggarwal stated.
Aggarwal emphasized that in-house LFP cell manufacturing is crucial for reducing the overall cost of electric vehicles, as battery expenses constitute a significant portion. The company claims the S1Z offers an impressive range of up to 301 km under IDC testing conditions.
In a strategic move to expand its market reach, Ola Electric also plans to establish its first dealer-operated stores, with the S1Z range expected to be a primary product scaled through this new retail channel.
Market Experts Weigh In
Kranthi Bathini, Equity Strategist at WealthMills Securities, commented on the significance of the S1Z launch. "Despite the recent negativity around Ola Electric, the launch of an electric scooter priced below Rs 80,000 is important for the company at this point. We are seeing increasing interest from customers in electric two-wheelers, with some brands witnessing longer waiting periods in the segment," Bathini noted.
However, Bathini cautioned that the company's ability to improve its revenue and profitability will be critical for its medium- to long-term prospects, advising investors with a high-risk appetite to consider holding the stock.
Technical Outlook for Ola Electric Shares
From a technical perspective, Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, suggested a bullish reversal. "The counter seems to showcase a bullish reversal for upside potential of Rs 47-48 in the near period. On the lower end, Rs 36 is likely to act as support zone in the near period," Krishan said.
AR Ramachandran, a Sebi-registered research analyst at Tips2trades, echoed a bullish sentiment, identifying strong support for Ola Electric's stock at Rs 38.3 on daily charts. He added, "A daily close above the resistance of Rs 42.6 could lead to an upside target of Rs 46 in the near term."