The Novonix Ltd (ASX: NVX) share price tumbled to another 52-week low today.
Novonix shares fell 10.58% to $1.1.395 each on the market today. For perspective, the
S&P/ASX 200 (ASX: XJO) slipped 0.3% while the S&P/ASX All Technology Index dropped 1.24%.
Let’s take a look at what could be impacting the Novonix share price.
What’s going on?
Novonix is a battery materials technology company. ASX tech shares struggled after the Nasdaq Composite fell 1.38% in the US overnight.
Bond yields lifted higher, impacting growth shares including technology, CNBC reported. Truist Wealth co-chief investment officer Keith Lerner told the publication:
Itâs basically the continuation of high yields depressing growth, with redistribution into other sectors that are smaller, but not big enough to change the headline index.
Novonix makes graphite anode materials for the lithium-ion battery supply chain. ASX lithium shares also struggled today. The Sayona Mining Ltd (ASX: SYA) share price sunk nearly 11% while Pilbara Minerals Ltd (ASX: PLS) shares fell nearly 4%.
It seems concerns about further interest rate rises and inflation could also be weighing on investor sentiment. Japan’s inflation lifted at its fastest pace since 1981 in November, Bloomberg reported.
Novonix reported a $71 million loss in the 2022 financial year. Higher interest rates also mean debt costs more.
In recent company news, Novonix recently downgraded its graphite anode materials production from the Riverside facility in the US. It is now expecting to produce 3,000 tonnes per annum (tpa) starting in 2024. As my Foolish colleague James reported, this is a significant drop from the company’s plan to produce 10,000 tpa of synthetic graphite in 2023.
Share price snapshot
The Novonix share price has fallen 84% in the last year.
For perspective, the ASX 200 has lost 4.5% in a year.
The post Why did the Novonix share price sink to a new 52-week low today? appeared first on The Motley Fool Australia.
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More reading
- Why Block, Life360, Pilbara Minerals, and Syrah shares are dropping today
- What can ASX lithium share investors learn from Tesla discounting its cars?
- Here are the 10 most shorted ASX shares
- 5 ASX lithium stocks to buy in 2023: brokers
- Is Core Lithium the next Pilbara Minerals?
Motley Fool contributor Monica O’Shea 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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