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Why did Zapp Electric Vehicles (ZAPP) stock fall 25% today?

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Zapp Electric Vehicles (NASDAQ:Fasten) the company’s shares are down on Wednesday, but that’s only because of yesterday’s rally in shares of the electric vehicle (EV) company.

ZAPP shares closed Tuesday up 94.3%, amid heavy trading, with more than 44 million shares traded. To put that number into perspective, the company’s average daily trading volume is about 7.1 million shares.

The rally came without any news from Zapp Electric Vehicles. But it did come with a report from China. It showed that sales of combustion-engined cars in that country had fallen faster than expected.

ZAPP share movements on Wednesday

Given the massive rally in ZAPP stock yesterday, it makes sense that it would give back some of its gains this morning. That caused the stock to fall 24.7% Wednesday morning.

Investors will note that this is not a sign of a sell-off in ZAPP stock. The current decline comes with a turnover of around 664,000 shares. That is still well below the company’s average daily trading volume.

ZAPP stock has also been a strong driver throughout 2024. Zapp Electric Vehicles stock was up 220.5% year-to-date when markets closed yesterday. However, the stock is down 61.3% over the past 12 months.

Investors will want to stick around for even more of the latest stock market news!

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As of the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are the author’s own, subject to InvestorPlace.com Publication Guidelines.