The Novonix Ltd (ASX: NVX) share price continued its disappointing run on Wednesday.
The battery technology company's shares were down almost 5% to a 52-week low of $1.77 before closing the day at $1.78.
This latest decline means the Novonix share price is now down a whopping 83% since the start of the year.
What's going on with the Novonix share price?
The Novonix share price has come under pressure this year after loss-making companies fell out of favour with investors.
And boy is Novonix making a loss! Last month the company released its full year results and revealed a net loss of $71.4 million. This was 295% greater than the $18.1 million loss it recorded in FY 2021 and left Novonix with a cash balance of $207.1 million.
While that is a sizeable balance, management doesn't expect it to be enough to reach profitability. This may have spooked investors. It explained:
The consolidated entity is continuing to execute on its expansion plans of reaching production capacity of 40,000 tonnes per year by 2025 and in order to fund these expansionary activities, which will primarily involve significant capital expenditure, additional funding beyond the existing cash balance at 30 June 2022 will be required.
What else?
Also weighing on the Novonix share price has been consistent price target downgrades by analysts at Morgans.
At the start of the year, the broker had a hold rating and $7.32 price target on its shares.
Since then, Morgans has been hacking away at its valuation. So much so, at the start of the month, the broker cut its price target down to $2.11. That's a 71% haircut in less than 12 months!
Morgans has been disappointed with the commissioning of the Riverside anode facility and notes that there is still a lot of uncertainty with its anode business.
