Ola Electric has seen its shares dip below the initial public offering (IPO) price for the first time since the company went public. On Tuesday, the stock declined by 3.5%, closing at Rs 76.64 after hitting an intraday low of Rs 74.84 on the National Stock Exchange (NSE). 
This marks a significant moment for the company, as it now trades below the IPO price of Rs 76, which was established during its listing on August 9.
The company's market debut was initially met with a mix of enthusiasm and caution. Ola Electric's shares listed at the upper band of the issue price and experienced a rapid surge shortly thereafter, reaching a peak of Rs 157.40 by August 20. 
This rise was largely attributed to renewed investor interest and optimism surrounding the potential for widespread adoption of electric vehicles (EVs).
However, the momentum did not last. In recent weeks, Ola Electric's stock has been on a downward trajectory, driven by an intense sell-off. This decline can be linked to a series of negative developments affecting the company.
These include growing service-related issues, regulatory show-cause notices, and a noticeable decrease in both monthly sales and market share.
As a result, Ola Electric's market capitalization has halved, dropping to Rs 33,804.60 from a peak of over Rs 69,000 crore in just two months.
In light of these challenges, global broking firm HSBC has revised its outlook on Ola Electric. Having been the first to initiate coverage on the company, HSBC has cut its target price for the stock from Rs 140 to Rs 110. 
The firm pointed out that the penetration rate for electric two-wheelers, which had shown promise until September, has stagnated around 6%. 
This stagnation is concerning, as a significant portion of Ola Electric's growth projections relies on a continued increase in this penetration rate.
HSBC's analysis highlights the precarious position Ola Electric currently finds itself in. With service issues and regulatory challenges weighing heavily on the company's performance, the road ahead may require careful navigation to regain investor confidence and stabilize its market standing.