Why is the Novonix share price tumbling 6% on Monday?

With the S&P/ASX 200 Index (ASX: XJO) now down 1.94% for the day so far to 6,966 points or so, it’s fair to say that ASX 200 shares have had better starts to a trading week. But amid these nasty falls, the Novonix Ltd (ASX: NVX) share price is certainly standing out.

Novonix shares have had a shocker of a start to the week. The battery technology company has suffered a 6.54% loss as it currently stands to $2.22 a share. So why is this ASX company enduring a loss more than triple that of the broader markets?

Well, unfortunately, it’s not quite clear what has gotten investors’ collective goats over this company today. There has been no news or announcements whatsoever out of Novonix today. Or indeed since 5 August.

What’s going on with the Novonix share price today?

So it thus seems the most likely explanation for these falls is that investors are getting a bit carried away with the market’s overall losses and bailing out of Novonix shares with gusto.

But this situation isn’t just confined to the Novonix share price. We see many other ASX shares in Novonix’s outer wheelhouse experiencing similar moves. Take lithium producer Pilbara Minerals Ltd (ASX: PLS). It’s currently down 1.83% at $3.49 a share.

Core Lithium Ltd (ASX: CXO) is down 2.88%, while Lake Resources N.L. (ASX: LKE) is faring even worse, down nearly 10%.

But investors seem to have been developing a distaste for Novonix shares for a while now. Including today’s falls, the company has now dropped a painful 32% or so since 11 August.

Whatever the reason for today’s dire share price performance, no doubt investors will be hoping this week can only get better. But we shall have to wait and see.

In the meantime, the current Novonix share price gives this ASX battery share a market capitalisation of $1.08 billion.

The post Why is the Novonix share price tumbling 6% on Monday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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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