The Novonix Ltd (ASX: NVX) share price has continued its slide on Thursday.
In afternoon trade, the battery technology company's shares were down 4% to a 10-month low of $3.17.
When the Novonix share price hit that level, it was down a massive 75% from its 52-week high of $12.47.
What's going on with the Novonix share price?
The weakness in the Novonix share price today has been driven by broad market weakness, which is being felt hardest among higher risk shares.
For example, battery materials producers Liontown Resources Limited (ASX: LTR) and Pilbara Minerals Ltd (ASX: PLS) are both down over 4% on Thursday.
But what about its larger decline?
The catalyst for the 75% decline for the Novonix share price from its 52-week high appears to be valuation concerns.
After all, with a total of ~486 million shares outstanding, when its shares were fetching $12.47, it implied a market capitalisation of over $6 billion.
For context, that's more than both AGL Energy Limited (ASX: AGL) and Bank of Queensland Limited (ASX: BOQ) despite Novonix generating only modest revenue of US$6.4 million during the first three quarters of FY 2022.
With Novonix's market capitalisation now standing at ~$1.6 billion, it is looking more reasonable. However, the market may want to see a major uptick in its revenue before the buyers come flooding back in.
