Chijet Motor Plummets 66.89%: What's Behind the Black Swan Move?

Summary
• CJET’s price collapsed to $0.5826, a 66.89% intraday drop from $1.76
• Intraday range: $1.64 (high) to $0.575 (low), with 10.03% turnover
• 52-week low of $0.575 now within 0.1% of current price

Chijet Motor’s catastrophic intraday selloff has triggered urgent scrutiny. The stock’s freefall—its lowest price since 2023—coincides with a sector-wide recalibration in EV demand and regulatory shifts. With turnover surging and technical indicators flashing red, traders are scrambling to decode the catalyst behind this unprecedented move.

EV Sector Volatility and Strategic Shifts Trigger CJET's Freefall
The collapse aligns with Nissan’s pivot to hybrids and waning EV demand, as highlighted in sector news. While IRS guidance extended EV tax credit eligibility, automakers like Nissan and Mazda are scaling back EV ambitions due to high costs and shifting consumer preferences. CJET, a niche player in automotive components, appears caught in the crossfire of sector-wide overcapacity and strategic reallocations. The stock’s breakdown below key support levels—now trading near its 52-week low—suggests a loss of confidence in its EV-related revenue streams.

Automotive Sector Under Pressure as EV Momentum Wanes
Tesla’s -1.44% intraday decline mirrors broader sector jitters. Nissan’s hybrid pivot and VW’s ID4 production cuts underscore a systemic slowdown in EV adoption. CJET’s sharp drop reflects a flight to safety within the sector, as investors reprice risk amid regulatory uncertainty and softening demand. The stock’s performance diverges from peers like Ford, which faces recall challenges but retains a stronger balance sheet.

Technical Indicators Signal Caution Amid CJET's Sharp Decline
• RSI: 47.8 (neutral, but trending downward)
• MACD: -0.136 (bearish divergence from signal line of -0.152)
• Bollinger Bands: Price at 0.5826, far below lower band of 1.254
• 200-day MA: 1.889 (price 63% below)

CJET’s technical profile screams short-term oversold conditions, but the 52-week low at $0.575 suggests further downside risk. Traders should monitor the $0.575 level as a critical support. With no options liquidity available, leveraged ETFs remain off-limits. A bounce above $1.25 (lower Bollinger Band) could trigger a rebound, but this requires a sector-wide reversal in EV sentiment.

Backtest Chijet Motor Stock Performance

Urgent Action Needed as CJET Tests Critical Support Levels
The selloff reflects a perfect storm of sector-wide headwinds and overleveraged positioning. While technical indicators hint at a potential rebound, the stock’s proximity to its 52-week low demands caution. Tesla’s -1.44% decline signals broader sector fragility. Investors should prioritize risk management: short-term traders may consider tightening stops below $0.575, while long-term holders should await a confirmed reversal above $1.25. This is a high-volatility environment—watch for regulatory updates or sector consolidation to drive the next move.