Shares of Enovix (NASDAQ: ENVX) slumped on Tuesday and were trading 17% lower as of noon. The lithium-ion battery manufacturer baffled investors today when it announced the restructuring of its only factory.

Enovix said it has initiated a "realignment" of its factory in Fremont, California, to turn it into an innovation center focused on product development.

In July, the company finalized a second factory in Penang, Malaysia, that it expects to start production in 2024. Enovix believes its move supports its strategy to "locate high-volume manufacturing in Asia near customers and suppliers while locating technology development in both Silicon Valley and Asia."

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Source Fool.com