Chijet Motor (CJET) Dives 12.41% on Sept 9, 2025, Amid Auto Sector Selloff, Inflation Jitters

Chijet Motor (CJET) plunged 12.41% on September 9, 2025, marking its sixth consecutive day of losses and a staggering 92.70% decline over the period. The stock hit an intraday low, with a 20.00% drop during the session, reflecting a severe erosion of investor confidence. This sharp selloff has positioned CJET as one of the market’s most vulnerable equities amid broader sectoral and macroeconomic headwinds.

The decline is part of a sector-wide downturn in automotive and small-cap stocks, driven by rising inflation concerns and a risk-off market sentiment. Broader indices, including the S&P 500 and Nasdaq, also retreated, underscoring systemic pressures. Investors are increasingly prioritizing safety amid uncertainties around monetary policy tightening, which could dampen consumer demand for vehicles and related sectors.

Chijet’s exposure to macroeconomic volatility is compounded by its status as a small-cap stock with limited liquidity and institutional ownership. The company’s lack of detailed financial disclosures or operational transparency has left investors without clear benchmarks to assess its resilience. This opacity exacerbates fragility during market stress, as stakeholders struggle to differentiate between viable and structurally weak firms.

Historical performance further highlights the stock’s vulnerability. CJET ranked as the top loser in the past week, with a 78.24% decline, indicating a flight from riskier assets. While no company-specific catalysts—such as earnings shortfalls or operational issues—were cited, the absence of positive news has left the stock susceptible to systemic shocks. Policy risks, including potential regulatory changes or supply chain disruptions, also loom as threats, particularly for small-cap players with limited adaptability.

Investor behavior and liquidity constraints have amplified the selloff. With low trading volumes, even modest shifts in institutional or hedge fund activity can trigger sharp price swings. The broader market’s bearish tone has accelerated divestment from high-risk equities, pushing CJET to record lows. Without meaningful improvements in transparency or market stability, the company faces prolonged challenges in regaining investor trust.