The Syrah Resources Ltd share price is down 8%

The market may have sunk notably lower today, but the Syrah Resources Ltd (ASX: SYR) share price has fallen significantly more.

At the time of writing the graphite miner’s shares are down 8% to $3.31.

What happened?

With no news out of the company or broker notes floating around, today’s decline is a bit of a mystery.

Today’s sell-off could be related to declines in electric vehicle shares globally. Both Tesla and BYD have fallen sharply over the last 24 hours, leading to lithium miners such as Orocobre Limited (ASX: ORE) and Pilbara Minerals Ltd (ASX: PLS) declining today as well.

As graphite is also used in the anodes of electric vehicle batteries, Syrah’s shares tend to rise and fall with the lithium miners.

In addition to this, it is also worth noting that Syrah does have high levels of short interest and has been the most shorted share on the ASX for many months. At the last count there was 20.6% of its shares held short.

Clearly short sellers think there is further for its shares to decline from here.

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Motley Fool contributor Motley Fool Staff has no position in any stocks mentioned.. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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