Novonix (ASX:NVX) share price shrugs off this morning’s gains to plunge 4% lower

Here’s what’s been going on with Novonix’s share price today

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Monday was shaping up to be a great day for Novonix Ltd (ASX: NVX). Unfortunately, its share price took a turn for the worst this afternoon, plunging back into the red to build on Friday’s losses.

Novonix’s stock tumbled 32.4% lower on Friday despite the company’s silence, spurring a ‘please explain’ from the ASX.

Investors likely rejoiced earlier today when the company’s fortunes seemingly turned around. Its shares boosted 16% higher this morning to trade at $9.54.

However, at the time of writing, the Novonix share price has slid back down to $7.92. That’s 3.53% lower than it was at the end of Friday’s session.

For context, the S&P/ASX 200 Index (ASX: XJO) is currently down 0.22%.

Let’s take a closer look at what might be weighing on the lithium-ion battery technology company’s shares today.

Could this be why the Novonix share price is falling?

The Novonix share price’s movements today might have been spurred by two items of price-sensitive news released late on Friday.

The first came just over an hour before the market closed for the day. Then, the company released its response to the ASX’s query regarding its unexplained tumble.

Within the release, Novonix clarified that its recently retired director, Greg Baynton hasn’t sold any shares in the company.

The company said concerned shareholders had approached it regarding Baynton’s holdings following a final director’s interest notice, released on Thursday afternoon.

Such concerns might have weighed on the Novonix share price on Friday and could have been initially abated by the company’s announcement.

Novonix also pointed to a report by CNBC as a potential cause of its Friday in the red. The report claims that Tesla Inc (NASDAQ: TSLA) wants to extend a tariff waiver for Chinese graphite imported into the US.

Novonix quoted the outlet as saying: “Only mainland China could provide the quantity of graphite it needs … to manufacture its batteries in the US”.

As investors likely know, Novonix’s PUREgraphite business is working to produce graphite in Tennessee.

It plans to produce 10,000 tonnes of graphite annually by 2023, 40,000 tonnes annually by 2025, and 150,000 tonnes annually by 2030.

Additionally, as The Motley Fool Australia has previously reported, Novonix is often sensitive to news regarding Telsa. Such sensitivity is potentially due to its leaders’ ties with the car manufacture.

Finally, after Friday’s close, S&P Dow Jones Indices announced Novonix will soon be added to the ASX 200. The company’s inclusion will be effective as of 20 December.

By adding the company to the index, the esteemed body has likely helped legitimise the company as an ASX giant.

The news might have excited the market this morning, spurring the Novonix share price’s boom before the enthusiasm subsided.

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Motley Fool contributor Brooke Cooper 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.

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