You Are What the Market Makes of You

Over in India, Ola Electric is in the process of getting listed on the Indian bourses. The company is the largest electric two-wheeler manufacturer in the country. The IPO, expected to be at more than USD 5.5bn, would make Ola Electric the world’s most valued electric two-wheeler manufacturer, valuing the Indian company more than Livewire (roughly USD 1.5 bn), AIMA (3.25 bn) and even Yadea (USD 3.91 bn).

No other pure-play player comes even close, and that has started making the local media question the valuation.

However, that is not what we are analyzing today.

In light of a heavy-duty listing, we started looking at how the publicly traded electric two-wheeler manufacturers have fared. This is the third and concluding part of our series. In the last two weeks, we have covered Livewire, Volcon, Arcimoto, Niu, and Zapp and realized that the glory days are long gone, with many now trading at more than 90-percent discount from their peak valuations.

The nature of the beast is electric two-wheelers, and the glory days may not come back for a long time.

Some of the above are listed through SPAC, and the common thread seems to be investors rushing to the exit as soon as the company gets listed. That reeks of low confidence in the businesses or entities erected on thin straws.