Why is the Core Lithium share price cratering 9% on Monday?

The Core Lithium Ltd (ASX: CXO) share price is plummeting amid a broader sell-off event in which S&P/ASX 200 Index (ASX: XJO) miners are being crushed.

Stock in the lithium favourite is down 8.7% at the time of writing, trading at $1.26.

Comparatively, the ASX 200 has tumbled 1.9% right now. At its intraday low, the index was trading just 0.4% higher than the 52-week low it set in June.

Let’s take a closer look at what’s going wrong for the soon-to-be lithium producer on Monday.

Core Lithium share price dives 8% amid ASX 200 sell-off

The Core Lithium share price is helping to drag the ASX 200 even deeper into the red today despite the company’s silence.

The stock is currently the S&P/ASX 200 Materials Index (ASX: XMJ)’s worst performing constituent.

In turn, the sector is tumbling 4.6% right now, leaving it outperforming only the S&P/ASX 200 Energy Index (ASX: XEJ). The energy sector is down a whopping 6% at the time of writing.

While a falling oil price appears to be weighing on the energy sector right now, fears of an impending recession are seemingly taking their toll on ASX 200 miners.

Today’s tumble also sees Core Lithium’s stock trading 10% lower than it was at the end of last month. Interestingly, that’s the last time the market heard price-sensitive news from the company.

Then, it announced the final date on which it was expected to complete its offtake negotiations with electric vehicle giant Tesla Inc (NASDAQ: TSLA) had been pushed back to next month.

Despite its recent suffering, however, the Core Lithium share price is still more than 100% higher than it was at the start of 2022. It has also gained over 200% since this time last year.

The post Why is the Core Lithium share price cratering 9% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here’s which ASX lithium shares investors have been loading up on this month
• Which ASX lithium shares are performing best in 2022?
• Why has the Core Lithium share price cratered 15% in a week?
• Guess how many companies in the ASX 300 actually make no money
• Is this prediction great news for ASX lithium shares?

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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