Ola Electric‘s share price was racing at the bourses even as global brokerage firm HSBC cut its price target on the electric vehicle stock. The stock went up around 4% to hit an intraday high of ₹80.29.

What Happened: Shares of the company look to halt its two straight session losing streak. Shares of the company have been under pressure over the past few weeks.

HSBC maintained its “buy” rating for the stock but cut the price target to ₹110 from ₹140. The brokerage firm expressed concerns regarding slower-than-expected growth in electric two-wheeler adoption, increased competition and persistent service challenges.

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The backlog at service stations has reportedly decreased by 20-30% monthly, though it remains five to seven times higher than optimal levels. While both large and small service stations have increased technician numbers, the pace of hiring has been slower than anticipated due to a shortage of skilled labour, according to the research note from HSBC.

The analysts also added that the introduction of several low-cost models such as Bajaj Auto‘s Chetak 2903 and TVS Motor‘s iQube 2.2 kilowatt-hour have pressured Ola’s market share. These affordable variants have attracted consumers, posing a challenge to Ola’s position in the electric two-wheeler segment.

Sales For October: The latest data from the Vahan portal shows continued strength in the company’s sales this month. Ola Electric continues to lead the market, with nearly 32,000 units sold, compared to just under 25,000 units in September. The company has rolled out several discounts in the past few weeks to attract customers.

TVS Motor Company reclaimed its position as the second-largest player in the electric two-wheeler market. The company has sold over 23,000 units in October.

Price Action: Ola Electric’s share price was up 1.44% to trade at ₹78.40 in early trade on Monday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.