The Lake Resources N.L. (ASX: LKE) share price came under pressure again on Tuesday.
The embattled lithium developer's shares were down as much as 5% to 19.2 cents at one stage.
When the Lake Resources share price hit that level, it meant it had lost 13% of its value over the last three trading sessions.
Why is the Lake Resources share price tumbling again?
There are a couple of potential reasons for this weakness. The first is a continuation of the downward trend we have seen over the last 12 months.
Things have been so bad for the lithium developer that its shares are now down a whopping 82% since this time last year.
Based on recent updates regarding its production plans and cost expectations, the market appears to seriously doubt whether its Kachi operation in Argentina is viable.
Management estimates that its phase one plan has a capital cost of US$1.1 billion to US$1.5 billion. This compares to its previous estimate of US$544 million.
So, with a market capitalisation under $300 million, Lake is going to have to raise upwards of five times its current valuation to get the project operating.
What else?
Also weighing on the Lake Resources share price was news that the company has been kicked out of the ASX 200 index at the quarterly rebalance.
Though, this shouldn't have come as a surprise to investors given its fall from grace and low market capitalisation.
One group of investors that will be celebrating these declines is short sellers. As one of the most shorted shares on the ASX, Lake Resources has delivered big returns to those shorting it.
And with its short interest still sky high, they don't appear to believe this is where the declines stop.
