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The stock of Ola Electric Mobility, a prominent Indian electric vehicle manufacturer, experienced a significant decline of over 6% following a notice issued by the Central Consumer Protection Authority (CCPA) regarding misleading advertisements. The stock closed at 85.21 apiece, marking a fourth consecutive session of losses on the Bombay Stock Exchange (BSE).
The CCPA's notice, which was issued earlier this week, alleged that Ola Electric had engaged in deceptive advertising practices, particularly concerning the range and performance of its electric scooters. The authority accused the company of exaggerating the scooters' range and misrepresenting their performance capabilities, potentially misleading consumers.
The notice has triggered concerns among investors, prompting them to sell off Ola Electric's stock. The company's share price has been under pressure in recent weeks, and the CCPA's action has further exacerbated the situation. The stock's decline suggests that investors are apprehensive about the potential impact of the regulatory scrutiny on Ola Electric's future prospects. This incident highlights the importance of transparency and accuracy in advertising, especially for companies operating in the rapidly evolving electric vehicle sector.
Source: Ola Electric Mobility stock declines over 6% after CCPA notice on misleading ads