Why is the Novonix share price sliding on Tuesday?

The Novonix Ltd (ASX: NVX) share price is dragging on the tech sector on Tuesday despite the company’s silence.

At the time of writing, the Novonix share price is $2.455, 4.47% lower than its previous close.

That makes it the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s worst performer. The sector is currently recording a 0.72% gain while the S&P/ASX 200 Index (ASX: XJO) is lifting 0.09%.

So, what might be weighing on the ASX 200 battery technology and materials stock today? Let’s take a look.

What’s weighing on the Novonix share price?

The Novonix share price is defying its sector’s gains on Tuesday to tumble lower.

Interestingly, there’s been no word from the company to explain investors’ apparent shifting sentiment. Though, it’s worth noting today marks the second consecutive day in which the stock has plummeted.

Shares in Novonix fell 9% yesterday after posting an 11% gain over the course of last week. Thus, its latest slip may represent extended profit taking.

It’s also worth noting the company was mentioned in Phillips 66’s latest quarterly report, released after the market closed on Friday. The New York-listed company snapped up a 16% stake in Novonix in August 2021.

Sadly, that holding’s value fell by US$240 million over the three months ended June 2022 and US$398 million over the first six months of this year.

But Novonix isn’t alone in the red today. Many of its fellow battery-focused stocks are also suffering.

Lithium and boron producer Allkem Ltd (ASX: AKE) is the worst performing S&P/ASX 200 Materials Index (ASX: XMJ) share right now, recording a 4.75% tumble.

Meanwhile, lithium shares Core Lithium Ltd (ASX: CXO) and Lake Resources N.L. (ASX: LKE) are down 3.4% and 3% respectively.

The Novonix share price is now 77% lower than it was at the start of 2022. It has also fallen 14% since this time last year.

The post Why is the Novonix share price sliding on Tuesday? appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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