Chijet Motor (CJET) Shares Plunge 12.5% as Rising Inflation Fears and Market Selloff Intensify

Chijet Motor (CJET) shares plunged 12.5% intraday on September 8, 2025, marking a record low and extending a five-day losing streak with a cumulative decline of 91.67%. The stock joined a broader market selloff, ranking third among the week’s worst performers following a 75.15% drop to $0.147, a level reflecting severe investor caution.

The decline aligns with a volatile market environment where the S&P 500 closed at 6,460.26, down 0.6% for the day, while the Nasdaq Composite, heavily weighted with tech and AI stocks, fell 1.2%. This sector-specific pressure likely spilled over to CJET, despite its primary classification as an automotive company. The broader retreat from high-growth and small-cap equities, exacerbated by rising inflation concerns—evidenced by a 2.6% year-on-year PCE Price Index—further intensified risk-off sentiment, disproportionately impacting speculative names like CJET.

While no direct company-specific developments were disclosed in the provided materials, the magnitude of CJET’s selloff suggests potential catalysts. These could include sector-wide challenges in the automotive industry, such as regulatory shifts, supply chain disruptions, or competitive pressures from larger EV players. Additionally, macroeconomic uncertainties, including Federal Reserve policy ambiguity, may have amplified investor anxiety, particularly for smaller firms with limited visibility into their operational resilience.

The Russell 2000’s mixed performance—up 6.0% for August but facing tariff-related risks—highlights the fragility of small-cap stocks amid macroeconomic headwinds. CJET’s lack of detailed financial disclosures or strategic updates further complicates assessing its intrinsic value, leaving investors to rely on broader market dynamics. As the stock trades at a historically low valuation, its near-term trajectory will likely remain tethered to macroeconomic indicators and sector-specific developments, with limited clarity on recovery catalysts.