Synopsis: A public spat between comedian Kunal Kamra and Ola Electric's CEO, Bhavish Aggarwal, sparked a major controversy when Kamra shared a photo of Ola's electric scooters at a service center, criticizing their quality. The fallout led to a significant drop in Ola Electric’s stock, wiping out ₹3,625 crore from the company's market value.
The controversy surrounding Ola Electric took center stage when comedian Kunal Kamra shared a picture of the company's electric scooters lined up at a service center, questioning the quality of the vehicles and whether Indian consumers were receiving fair treatment.
This simple tweet triggered a chain reaction, causing Ola Electric's shares to take a nosedive, wiping out Rs. 3,625 crore from its market cap in just two hours.
Thyrocare founder, Dr. A. Velumani, posted on social media asking whether this dramatic stock plunge was due to a single tweet or if deeper issues were at play.
Kamra’s post quickly gained attention, especially after he tagged Union Minister Nitin Gadkari, which fueled the debate even further.
Ola Electric's CEO, Bhavish Aggarwal, didn't hold back in his response, accusing Kamra of posting a "paid tweet" and even offered him a job to help resolve the issues with their scooters.
Aggarwal also took a personal jab at Kamra’s comedy career, turning the exchange into a viral social media spectacle.
This public feud had far-reaching consequences. Ola Electric’s stock plummeted by 6.18%, dropping to Rs. 85.21 and reducing the company’s valuation to below $5 billion for the first time since it went public.
This marked a sharp decline from its earlier peak of Rs. 157.53 on August 20.
Underlying Issues and Mounting Complaints:
The heated exchange between Kamra and Aggarwal is just the latest episode in a series of challenges facing Ola Electric.
The company has been dealing with increasing customer dissatisfaction, with over 10,000 complaints lodged against its e-scooters in the past year on the National Consumer Helpline.
These complaints range from poor after-sales service to the scooters’ technical faults.
Moreover, Ola Electric received a show-cause notice from the Central Consumer Protection Authority, accusing the company of misleading advertisements and unfair trade practices.
Despite these serious allegations, Ola downplayed the impact, stating that they would respond within the given 15-day period and that the notice wouldn’t disrupt their operations.
Dr. Velumani's tweet raises an important question about the power of social media in influencing market dynamics.
While Kamra's post may have acted as a trigger, the underlying service issues and regulatory pressures seem to have amplified the financial fallout for Ola Electric.
The incident serves as a stark reminder of how vulnerable even large corporations are to the swift dissemination of information—and misinformation—on social media platforms.
In conclusion, the public clash between Kunal Kamra and Bhavish Aggarwal has highlighted the fragility of market confidence, especially when service quality concerns are amplified on social media.
While Kamra’s tweet may have initiated the plunge, it’s clear that deeper operational issues have played a significant role in Ola Electric's recent troubles.
With the added scrutiny from consumer authorities and a large volume of complaints, the company faces a tough road ahead.
This incident is a testament to the power of a single tweet to impact not just reputation but also financial stability.
Disclaimer: This article is intended for informational purposes only. It should not be considered financial or investment advice. Readers are advised to consult with a professional financial advisor before making any investment decisions.
