Why has the Novonix share price crumbled 19% in 2 weeks?

The ASX 200 tech giant is handing back much of its whopping October gains.

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Key points
  • The Novonix share price has fallen 19% over the last fortnight to trade at $2.19 today
  • That's despite no news having been released by the company during that time
  • Though it's worth noting the tech stock skyrocketed 52% in October

The Novonix Ltd (ASX: NVX) share price has been suffering over the past fortnight, tumbling 18% in that time.

Indeed, things have been mostly downhill since the share hit its November peak on the first session of this month. That saw the battery material and technology company's stock swapping hands for $2.77 apiece.

Today, the Novonix share price is $2.19. That's 76% lower than it was at the start of 2022 and 80% lower than it was this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 1% over the last two weeks. It has also fallen 5% year to date and is trading flat over the last 12 months.

So, what might be weighing on the Novonix share price? Let's take a look.

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.

Image source: Getty Images

What's been dragging the Novonix share price lower lately?

The Novonix share price has plummeted over the last fortnight despite silence from the company. Interestingly, the broader S&P/ASX 200 Information Technology Index (ASX: XIJ) hasn't suffered the same decline.

In fact, the sector – housing Novonix and its tech peers – has lifted 2.5% in that time.

Looking deeper, Novonix's short position has remained relatively unchanged over the last few weeks – remaining at around 3.6%. That's down from its September peak of around 5.8%.

However, there is one notable factor to consider when contemplating the stock's recent suffering. That is its brilliant October performance.

The Novonix share price leapt 52% in October amid news of a US$150 million grant from the US government. The most recent news from the embattled ASX 200 tech stock also concerned the grant. That was released on 3 November.

Thus, its recent tumble may well be a prolonged market correction following a bout of investor confidence. Though, things are rarely so simple on the ASX.

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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