Ola Electric Shares Rebound Amid Tax Reform Speculation

Ola Electric Mobility's shares have been battered this year, down 48% in 2025 and 70% over the past 12 months. However, the stock saw a sharp 9% rebound on Tuesday, closing at Rs 45.70 on the BSE, as investors weigh the impact of looming tax reforms.

The rally followed a lackluster Monday, when the stock slipped 0.3% even as the Nifty Auto index surged 4.2% on optimism that potential GST cuts could boost car and two-wheeler demand. Prime Minister Narendra Modi recently stated that the government plans to lower GST rates on several goods and services by Diwali, including a proposal to slash GST on small cars to 18% from 28%.

While a GST cut may positively impact auto demand, analysts caution that it could be negative for EVs if some states respond by raising road taxes, as the price gap between EVs and internal combustion engine vehicles would increase sharply.

Despite the policy uncertainty, some analysts see signs of bottom formation for Ola Electric. The company has been consolidating near the Rs 39 support zone, with multiple Doji candles signaling price stabilization. Experts suggest a buy range of Rs 43-44 with a stop-loss at Rs 39, highlighting the stock's potential to rise from the oversold zone.

Ola Electric's long-term strategy and expansion plans, including its Gen-4 platform spanning electric cars, rickshaws, and light commercial vehicles, are seen as attractive by some investors. The recent intra-day surge of over 10% reflects confidence in the company's growth prospects, though the stock continues to trade below long-term averages.