The Novonix Ltd (ASX: NVX) share price fell dramatically this morning before recovering some of its losses.
The Novonix share price fell 5% by midday before recovering. The company's share price finished the day 1.42% in the red. The company's closing share price of $1.735 is its lowest point in a year. For perspective, the S&P/ASX 200 Index (ASX: XJO) slid 0.27% today.
So why did the Novonix share price have a rough day?
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Novonix share price falls
The Novonix share price fell today, but it was not alone among ASX technology and battery metal shares. The S&P/ASX All Technology Index (ASX: XTX) dropped 1.33% today. Megaport Ltd (ASX: MP1) fell 2.44%, while Appen Ltd (ASX: APX) lost 1.92%. This followed the Nasdaq Composite (NASDAQ: .IXIC) in the United States descending 1.51% on Friday.
Novonix is a technology company supplying battery materials and equipment for the lithium-ion battery industry. ASX lithium shares also struggled today. For example, Sayona Mining Ltd (ASX: SYA) dropped 4.26%, while Core Lithium Ltd (ASX: CXO) fell 4.07%.
A couple of media reports on the electric vehicle (EV) industry have surfaced in the past day. For example, in a report on CNBC on Sunday US time, Toyota CEO Akio Toyoda predicted EV adoption could be slower than people think. He said:
Just like the fully autonomous cars that we are all supposed to be driving by now, EVs are just going to take longer to become mainstream than media would like us to believe.
Further, one analyst predicted a "rough patch" for electric vehicles in a media report today. OANDA senior market analyst Ed Moya, in quotes cited by the ABC, said:
I think that [electric vehicles] are in for probably a little bit of a rough patch, just because people are probably going to be a little bit hesitant and less urgent to buy something new.
The Reserve Bank of Australia (RBA) is tipped to raise interest rates by 0.5% on Tuesday.
Share price snapshot
The Novonix share price has dropped by 73.5% in the past year, while it has fallen 81% in the year to date.
For perspective, the benchmark ASX 200 has fallen 10% in the past year.
Novonix has a market capitalisation of around $856 million based on the current share price.
