Finshots Daily What is going on at Ola Electric?
Dec 22, 2025
Dive into the intriguing world of Ola Electric and the implications of Bhavish Aggarwal selling his shares. The discussion reveals Ola's ambitious manufacturing plans and rapid retail expansion amid rising operational challenges. As they face increased competition from established players, the balancing act between growth and losses takes center stage. Quality issues and thinning subsidies complicate matters, raising questions about their future strategies, including their foray into energy solutions. Will ambition be enough to overcome the hurdles ahead?
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Ambition Compressed Into Rapid Manufacturing
- Ola Electric tried to compress an entire EV manufacturing playbook into a few years by building a giant factory and localising production.
- That rapid ambition gave scale and mindshare but now exposes execution and margin risks as it moves from growth to operational discipline.
Rapid Revenue Growth, Rising Losses
- Ola's revenues grew rapidly from ~400 crore in FY22 to ~4,500 crore in FY25 but losses widened alongside scale.
- The company is still loss-making with cash burn remaining high despite top-line growth.
Manufacturing Punishes Speed With Costs
- Manufacturing's defects show up instantly across warranty, service and logistics, unlike software bugs that can be patched.
- Ola's rapid retail expansion uncovered weak quality control and after-sales strains that hurt margins and trust.