There is so much negativity about Ola Electric IPO! So much so that it is nauseating. It also seems Google & YouTube too are against this IPO. Those creators who make negative news about Ola Electric IPO are getting higher visibility. Most YouTuber share-market “analysts” have written negatively about a company which is THE market leader… that too by 30 percent.

Do the analyst think it is a JOKE to get 30% of a market which has the three of the BIGGEST 2-wheeler makers in the world (Hero Motors, Bajaj & TVS)? If they do then it shows their intelligence.

Or should we just call them “Chart-walle-bhaiya-log”?

These were the same “Chart-walle-bhaiya-log” who used to call Suzlon a “flop” company or Fluk-Company.

They also used to call Tata Motors a flop company last year when its shares were trading below Rs 120.

Investment in Ola Electric will reap benefits only in long term (10+ years). The company is in loss due to heavy investment in plant & machinery and will turn profitable over the years. This year it just set up plant for manufacturing Li-Ion batteries and started manufacturing leaving Exide & Amara Raja far behind.

Then there is eRickshaw & eCar manufacturing. All this is capital intensive.

Last time I saw such…

a negative activity was during Patanjali IPO. That time too people who did not know ABC of share market was forwarding messages about how evil Patanjali was by taking over Ruchi Soya and turned it into a profitable 4,500 Cr IPO just by using its brand name.

1. Ather Energy & Ola Electric are the only pure EV companies in India. Tata will never make more than 10-20% of its sale in EV.
2. First company to do away with dealerships and deliver directly to customer at home
3. Provides service directly at home.
4. Ola Electric has 5 industries in it:
   a) eScooters
   b) eMotorcycles
   c) eRickshaws
   d) eCars
   e) Li-Ion Battery manufacturing
   Exide & Amara Raja are planning factory setup while Ola already has started producing Li-Ion batteries (1.4Gwh)… and will expand to 100Gwh… almost doubling its capacity every year.

OLA Giga-Factory – Li-Ion battery Manufacturing itself is one big industry by itself.

Ola Electric has no rivals and will easily take 50% market share because Bajaj, TVS & Hero Motors are caught in a bind… In a classic Kodak, Blackberry & Nokia moment.

The expertise of petrol scooter makers will prevent them from expanding exponentially in new technology… just like Nokia, Blackberry & Kodak.

If petrol scooter companies make EVs they will eat into their own petrol scooter market share and not into Ola market share.

Also as Petrol scooter makers will not be able to compete directly with Ola Electric which is now a vertically integrated company right from parts to batteries.

In these short 2 years Ola Electric has released many upgraded variations of the scooter.

Ola Electric even has an industry first… A eScooter & an eMotorcycle (releasing on 15 Aug 2024). No other company has this credit. (Some small players has assembled version not designed & nanufactures ones).

Ola Electric is called the TESLA OF INDIA because of its fast unprecedented pace of scaling up.

Indian press has a bad habit or funded bad-habit to put down local innovative companies in India. Nano Car too faced such brickbats from the press. Electric scooters in general were clobbered by the press with EV Fires (while fires caught on Petrol 2wheelers which were much more than EV fires were sidelined).

Even Patanjali IPO has similar brickbats … FIIs abstained completely but retailers oversubscribed and it became a hit.

A dumb company like Tunwal which doesnt even have proper website … gets oversubscribed but only Ola gets warning… wow how dumb.

Even Ather Energy which has set up plant & machinery is in loss since 10yrs.

Both Ola & Ather Energy are good companies and the only 2 genuine EV makers.. rest all are either more interested in making petrol scooters or are assemblers.

Bajaj & TVS till last year was shouting at the govt saying India doesn’t have charging infrastructure for them to make eScooters. They were also not happy with Govt jumping from Bharat4 to Bharat 6 emission std.

Some car makers make cars without seatbelts,bairbags and also regularly fail crash testing… and they get pissed off when govt reminds them about it.

Both Ola Electric & Ather Energy are good companies but have 2 different approaches to sales. Ather believes in traditional Dealership model while Ola believes in direct delivery model.

Ather’s customer support is much better but it’s operational (yrly subscription paid monthly) cost is more expensive than petrol scooter running below 10,000km per yr.

Ather NEEDS & has subscription expenses while Ola Electric doesn’t have subscription costs.

Ather Energy basically has just 1 vehicle which gets slight upgrades and showcased as a new model.

Ola has vehicles with bigger & smaller battery pack and also eMotorcycles (15 Aug onwards) and future eRickshaws & eCars.

Also Ather is very very slow to grow. Both Bajaj & TVS caught up with it in spite of having a 10yr gap.

So basically if you were to put your money in both Ola & Ather the value of Ola in 10yrs will be much more than the value of Ather.

Last month was one of Ather’s worst month then Rizta was launched.

But both were using cold-German alphanumerical names.

Ather’s only advantage is that Apex & Rizta are better sounding names than the cold alphanumeric names of S1Pro, S1 Air & S1X of Ola.