Chijet Motor (CJET) Plummets 35% Intraday: What's Behind the Volatility?

Summary
• Chijet Motor (CJET) crashes 35.39% to $0.0648, hitting a 52-week low of $0.0549
• $300M crypto private placement announced Oct 27 triggers investor skepticism
• 52-week high of $2.99 contrasts with current price near 52-week low
• Turnover surges to 45.98M shares (54.5% of float) amid bearish technicals

Chijet Motor’s stock imploded on Oct 29, 2025, as investors reacted to a $300M cryptocurrency fundraising and deteriorating fundamentals. The stock’s 35.4% intraday drop—its worst single-day decline since the 2023 SPAC merger—reflects growing concerns over liquidity, operational viability, and regulatory risks. With the stock trading near its 52-week low and technical indicators flashing bearish signals, the question looms: Is this a buying opportunity or a warning shot?

Crypto-Fundraising Sparks Dilution Fears and Liquidity Doubts
Chijet Motor’s 35.4% intraday collapse was catalyzed by its Oct 27 announcement of a $300M private placement paid entirely in cryptocurrency. The offering, which issued shares at $0.10 and warrants exercisable at $0.12, triggered immediate skepticism about dilution and the company’s ability to manage crypto volatility. Investors also digested the company’s Q2 2025 earnings report, which revealed a $61.5M net loss, 82% revenue decline, and a $471M working capital deficit. The crypto-based capital raise—combined with ongoing litigation, asset freezes, and a recent Nasdaq minimum bid price warning—created a perfect storm of bearish sentiment.

Bearish Technicals and No Options: ETFs and Short-Term Plays
• MACD: -0.087 (bearish divergence from signal line -0.117)
• RSI: 31.1 (oversold territory, but bearish trend intact)
• Bollinger Bands: Price at $0.0648 (near lower band $0.0710)
• 200D MA: $1.489 (price 93% below long-term trend)
• Support/Resistance: 30D support at $0.0977–$0.1019; 200D support at $0.0809–$0.1350

CJET’s technicals confirm a deep bearish phase. The RSI at 31.1 suggests oversold conditions, but the MACD histogram (-0.0296) and 200D MA ($1.489) indicate a structural downtrend. With no options liquidity available, short-term traders should focus on ETFs like XLF (Financial Select Sector SPDR) for sector exposure or SPY (S&P 500 ETF) for broad market hedging. Aggressive short-sellers could target $0.0549 (52-week low) as a key level, with a stop-loss above $0.0750. The lack of options data underscores the stock’s illiquidity, making leveraged ETFs or cash-secured puts the only viable strategies for directional bets.

Backtest Chijet Motor Stock Performance
Below is an interactive back-test report for the “ 35 %-Plunge Rebound ” strategy on Chijet Motor (CJET) from 2022-01-01 to 2025-10-29. I automatically applied the following reasonable default risk-control settings—because the user did not specify exit rules—to make the test realistic and comparable:• Take-profit: +20 % (common short-term rebound target) • Stop-loss: -10 % (cap downside in a highly volatile penny-stock) • Maximum holding days: 30 (captures near-term mean-reversion while limiting capital lock-up)Key findings (see module for full details): • Total return –44.7 %, annualised –12.9 % → strategy destroyed value. • Max draw-down –62 %: high tail risk even with the 10 % stop-loss. • Only 22 % best trade; average loss –32 % dominates average gain +22 %. • Negative Sharpe (–0.44) indicates unfavourable risk-adjusted performance.Conclusion: Buying CJET after a 35 % plunge has not been a profitable contrarian tactic over the tested period—even with tight risk controls. Consider refining entry criteria (e.g., volume capitulation, broader market filter) or avoiding this extremely illiquid name altogether.You can explore all parameters and statistics in the module below.Feel free to drill down into the module for trade-by-trade details or let me know if you’d like to tweak parameters (e.g., wider stop-loss, different profit target, or additional filters).

CJET’s Freefall: When to Cut Losses and When to Watch
Chijet Motor’s 35.4% intraday plunge reflects a confluence of poor fundamentals, crypto-driven dilution, and regulatory risks. While the RSI at 31.1 hints at potential short-term bounces, the 200D MA and Bollinger Bands suggest a prolonged bearish phase. Investors should monitor the $0.0549 52-week low as a critical support level and watch for follow-up filings on the crypto custody arrangements and warrant dilution. With sector leader RIOT up 2.92%, the broader market’s resilience contrasts CJET’s struggles. For now, the playbook is clear: avoid long positions, consider shorting near $0.0648 with a $0.0549 target, and watch for regulatory or liquidity triggers that could accelerate the decline.