The Novonix (ASX:NVX) share price tumbled 14% today. What's going on?

The company was the worst performing share in the ASX 200 today…

| More on:
Side-on view of a devastated male investor laying his head on his laptop keyboard

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Novonix Ltd (ASX: NVX) share price took a dive from the outset of the opening bell on Wednesday. Unfortunately for shareholders, the trend continued throughout the entire session.

By the end of the day, shares in the battery materials and technology company were down 14.1% to $8.17. It is difficult to tell what exactly led to this capitulation in the share price given there were no announcements from the company.

On the other hand, Novonix was not alone in its whimpering Wednesday performance. Many other companies with exposure to commodities, such as lithium, were caught out of step. However, the Novonix share price was by far the worst among those in the S&P/ASX 200 Index (ASX: XJO).

Is the Novonix share price taking a breather?

The past year has been phenomenal for the Novonix share price. In the space of 12 months, the battery-focused company has gone from a missable speck to a $4.6 billion ASX icon. During that time, the company's price has boomed nearly 630% — making it the third-highest returning share in the benchmark index.

Outside of the immediate hype for electric vehicles, which has helped along with the value of just about any company with exposure to lithium, Novonix has had a couple of exciting items propel its value higher.

For instance, the company announced its expansion into 400,000 square foot facility in the United States back in June. The site will accommodate a planned 8,000 tonnes per year production operation of its anode materials. Additionally, Novonix gained the financial backing of US energy titan, Phillips 66 in August.

These announcements along with general positive sentiment for the sector have fuelled a tremendous 276% rally in the last 6 months alone.

All things considered, it is possible investors are taking some profits from the recent strength in the Novonix share price.

The next big line item for the company will be its annual general meeting. This is scheduled for 30 November 2021 at 8am (AEST).

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »