Ola Electric Shares Slide to Six‑Month Low After Goldman Sachs Issues Sell Rating

On Thursday, Ola Electric’s shares tumbled about 7%, slipping to their lowest level in six months. The dip came almost immediately after Goldman Sachs published a stark new note on the company.

In the report, the Wall Street heavyweight moved its recommendation from ‘Neutral’ to ‘Sell’ and trimmed the 12‑month price target to just Rs 23 per share. For a stock that had been hovering near Rs 35‑40, that’s a pretty big haircut.

Goldman didn’t mince words. It said Ola’s road to positive free cash flow looks “much more challenging” than many investors had hoped. The firm pointed to a combination of soaring interest costs, a hefty capital‑expenditure plan to build out its charging network and production capacity, and an extended stretch of operating losses that could linger well into 2027.

In plain terms, the analyst team is worried that the cash needed to fund new factories, battery packs and super‑chargers could outpace the cash the company actually generates from selling its scooters. Add to that a higher cost of borrowing – as rates in India climb – and the balance sheet starts to look a bit thin.

Investors reacted quickly. The NSE‑listed stock opened lower, and by mid‑session it was down about 7%, marking a fresh six‑month low. Volume spiked, indicating that both retail and institutional holders were scrambling to adjust their positions.

Other market watchers have taken note. A few brokerage houses echoed Goldman’s concerns, flagging the same capex pressure and profit‑margin squeeze. Yet some analysts remain cautiously optimistic, betting that Ola’s expanding footprint in the electric‑two‑wheeler market could eventually translate into scale economies.

For now, though, the consensus is clear: the short‑term outlook is bruised, and investors will be watching the next earnings report closely to see whether the company can tighten its belt, boost cash flow, and convince skeptics that its growth plan is sustainable.