Ola Electric stock Down Again Today, After Hyundai, Kia Sell Their Stakes In The Company

Mumbai, June 5, 2025 — In what could be considered a major reshuffle of foreign investments in the country’s EV sector, South Korean automakers have reduced their stakes in Ola Electric. Hyundai, previously owning a 2.47% stake in Ola Electric, has completely sold the holdings at ₹50.70 per share. Kia Corporation has offloaded 0.6% of its shares at ₹50.55 a piece. The total transaction value was ₹6.89 billion ($80 million). Kia’s holdings have fallen below 1%, and hence, its holdings are no longer disclosed in public filings.

Ola Electric’s share plummeted further at ₹49.66 at 12 p.m. IST, 5th June, 2025 (almost 6% down during the week). There are different reasons for the South Korean companies’ exit from Ola Electric, starting with mounting financial losses, regulatory troubles, stock underperformance, shifting focus towards hybrid vehicles, and broader global trade and investment realignments.

Stock Reaction and Market Context

The development triggered a sharp reaction in the market. Ola Electric’s stock tumbled 8% on Tuesday, with the share sale prices reflecting nearly a 6% discount to Monday’s closing price. On Thursday, the stock plummeted further by almost 0.70% and reached ₹49.66 per share.

In 2019, Hyundai and Kia collectively invested $300 million in Ola Electric, aiming to jointly develop electric vehicles and charging infrastructure in India.

Strategic Exit Amid Challenges

This exit timing could be quite critical as Ola Electric is already facing multiple issues, such as poor sales, regulatory scrutiny, and rising customer care complaints. The stock has lost almost 46% since August 2024 and has been in free flow since. The mounting competition from rivals has only deteriorated the company’s financial position.

The company reported a wider loss for the fourth quarter and is set to witness a further revenue decline in the first quarter of FY26, citing steep discounts introduced to combat rising competition.

As Ola Electric navigates these headwinds, the exit of two high-profile early investors raises questions about the company’s strategic direction and future market positioning.

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