Chijet Motor Plummets 26.8%: What's Behind the Sudden Freefall?

Summary
• Chijet Motor (CJET) crashes 26.8% intraday, hitting a 52-week low of $0.0811
• Company proposes radical name change to 'Digital Currency X Technology Inc.' ahead of AGM
• 1-for-30 reverse stock split approved by shareholders could trigger further volatility

Chijet Motor’s stock is in freefall, with a staggering 26.8% drop in a single session. The plunge follows a dramatic strategic pivot announced in late August, including a name change to a digital currency-focused entity and a reverse stock split. With the stock now trading near its 52-week low, investors are scrambling to decipher the implications of this corporate overhaul and whether the selloff is a buying opportunity or a warning sign.

Strategic Pivot Sparks Investor Panic
The collapse in CJET’s share price is directly tied to its announced shift from the automotive sector to an undefined digital currency technology venture. The proposed name change and 1-for-30 reverse stock split, set for shareholder approval on September 22, signal a complete abandonment of its core motor business. This abrupt pivot has triggered skepticism among investors, who are questioning the feasibility of the new strategy and the lack of operational details provided in filings. The reverse stock split, while often used to meet listing requirements, is typically a red flag for companies undergoing drastic rebranding, further fueling bearish sentiment.

Technical Analysis: A Bear Market Playbook
• RSI: 6.41 (extreme oversold)
• MACD: -0.508 (bearish divergence)
• Bollinger Bands: Price at lower band (-0.6068)
• 200D MA: $1.7967 (price far below)

CJET’s technicals paint a dire picture. The RSI at 6.41 suggests extreme overselling, while the MACD histogram (-0.0638) confirms bearish momentum. Bollinger Bands show the stock is trading near the lower boundary, a classic setup for a continuation of the downtrend. The 200-day moving average at $1.7967 is a distant target, but the path to recovery is blocked by key resistance levels at $0.1145 (previous close) and $0.1622 (30D support).

Top Options Picks:
• CJET20250922P0.08 (Put, $0.08 strike, Sep 22): IV 65%, Delta -0.45, Theta 0.04, Gamma 0.009
• CJET20250922P0.07 (Put, $0.07 strike, Sep 22): IV 72%, Delta -0.38, Theta 0.03, Gamma 0.008

These puts offer high leverage (50%+ IV) with moderate delta, ideal for a 5% downside scenario. The $0.08 strike (Put 1) has a 45% delta, balancing time decay (Theta 0.04) and sensitivity to price swings (Gamma 0.009). The $0.07 strike (Put 2) is a deep out-of-the-money play, capitalizing on elevated IV (72%) for a high-risk, high-reward bet. Both contracts align with the stock’s technical breakdown and the looming AGM vote on its strategic pivot.

Action Plan: Aggressive bears should target CJET20250922P0.08 into a breakdown below $0.0811. If the 52-week low is pierced, CJET20250922P0.07 offers a speculative play on further deterioration.

Backtest Chijet Motor Stock Performance
Below is an interactive back-test report summarising the “CJET 27 % Intraday Plunge” strategy.Key takeaways (high-level):• The plunge-buy approach has been overwhelmingly unprofitable for CJET since 2022, suffering extreme drawdowns and failing to capture sustainable rebounds. • Even with a generous 100 % take-profit target and a 20 % stop-loss, the majority of trades quickly hit the stop-loss, eroding capital. • The stock’s structural weakness (persistent down-trend, low liquidity) dominates any short-term volatility oversold effect.You can explore the detailed trade log, equity curve, and risk profile in the interactive panel above.

CJET’s Freefall: A Race Against Time
Chijet Motor’s freefall shows no immediate signs of abating, with technical indicators and corporate strategy pointing to a prolonged bearish phase. The AGM on September 22 will be a critical inflection point—shareholders must approve the name change and reverse split, which could either validate the pivot or deepen the selloff. Meanwhile, the sector leader MARA (MARA) is up 5.26%, highlighting the stark contrast between CJET’s turmoil and broader blockchain optimism. Investors should monitor the $0.0811 intraday low and the 200D MA at $1.7967 as key signals. For now, CJET’s trajectory is a cautionary tale of strategic ambiguity and market skepticism. Act now: Short CJET into the AGM vote or buy deep puts for a 5% downside play.