The Novonix Ltd (ASX: NVX) share price took a dive from the outset of the opening bell on Wednesday. Unfortunately for shareholders, the trend continued throughout the entire session.
By the end of the day, shares in the battery materials and technology company were down 14.1% to $8.17. It is difficult to tell what exactly led to this capitulation in the share price given there were no announcements from the company.
On the other hand, Novonix was not alone in its whimpering Wednesday performance. Many other companies with exposure to commodities, such as lithium, were caught out of step. However, the Novonix share price was by far the worst among those in the S&P/ASX 200 Index (ASX: XJO).
Is the Novonix share price taking a breather?
The past year has been phenomenal for the Novonix share price. In the space of 12 months, the battery-focused company has gone from a missable speck to a $4.6 billion ASX icon. During that time, the company’s price has boomed nearly 630% — making it the third-highest returning share in the benchmark index.
Outside of the immediate hype for electric vehicles, which has helped along with the value of just about any company with exposure to lithium, Novonix has had a couple of exciting items propel its value higher.
For instance, the company announced its expansion into 400,000 square foot facility in the United States back in June. The site will accommodate a planned 8,000 tonnes per year production operation of its anode materials. Additionally, Novonix gained the financial backing of US energy titan, Phillips 66 in August.
These announcements along with general positive sentiment for the sector have fuelled a tremendous 276% rally in the last 6 months alone.
All things considered, it is possible investors are taking some profits from the recent strength in the Novonix share price.
The next big line item for the company will be its annual general meeting. This is scheduled for 30 November 2021 at 8am (AEST).
The post The Novonix (ASX:NVX) share price tumbled 14% today. What’s going on? appeared first on The Motley Fool Australia.
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More reading
- Up 64% in a month, here’s why the Novonix (ASX:NVX) share price is supercharging right now
- Here are the top 10 ASX shares today
- The market had a lousy day. So why did the Novonix (ASX: NVX) share price leap 4%?
- Why has the Novonix (ASX:NVX) share price rallied 32% in 3 weeks?
- Here are the top 10 ASX shares today
Motley Fool contributor Mitchell Lawler 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 Bruce Jackson.
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