Chijet Motor (CJET) Plunges 27.86% Intraday: What's Behind the Freefall?

Summary
• CJET’s stock nosedives 27.86% to $0.0826, hitting its 52-week low of $0.0811
• Turnover surges 179.18% amid six consecutive days of losses
• Tesla (TSLA) buckles sector trends with 2.23% intraday gain
• CJET’s 92.7% decline over six days highlights systemic fragility

Chijet Motor’s (CJET) freefall has captured market attention as the stock collapses to record lows amid a broader sector selloff. With a 27.86% intraday drop and a 92.7% decline over six days, CJET’s collapse reflects a perfect storm of macroeconomic pressures, liquidity constraints, and investor flight from small-cap auto manufacturers. The stock’s performance starkly contrasts with Tesla’s resilience, underscoring divergent trajectories in the EV sector.

Systemic Pressures and Sector-Wide Weakness Drive CJET's Collapse
CJET’s 27.86% intraday plunge is part of a broader sectoral selloff in automotive and small-cap stocks, driven by rising inflation fears and a risk-off market sentiment. The stock’s six-day losing streak—culminating in a 92.7% decline—reflects systemic fragility exacerbated by low liquidity and limited institutional ownership. While no company-specific catalysts (e.g., earnings misses or operational issues) were cited, the absence of positive news has left CJET vulnerable to macroeconomic shocks. Historical context reveals a 78.24% weekly loss earlier this month, signaling a pattern of volatility tied to policy risks and weak transparency.

EV Sector Splits as Tesla Rises Amid CJET's Plunge
While CJET’s freefall paints a bleak picture for small-cap auto manufacturers, Tesla (TSLA) has bucked the trend with a 2.23% intraday gain. This divergence highlights the sector’s bifurcation: large-cap EV leaders with robust balance sheets and market visibility are outperforming smaller, less transparent peers. CJET’s struggles underscore the sector’s sensitivity to macroeconomic headwinds, particularly as inflation fears dampen consumer demand and liquidity constraints amplify price swings.

Navigating CJET's Freefall: ETFs and Options Playbook
• RSI: 6.41 (oversold)
• MACD: -0.508 (bearish divergence)
• Bollinger Bands: Price at lower band (-$0.6068)
• 200D MA: $1.7967 (far above current price)

CJET’s technicals scream bearish exhaustion, with RSI at extreme oversold levels and MACD in deep negative territory. The stock is trading near its 52-week low ($0.0811), with no leveraged ETFs available for directional bets. Short-term traders should focus on key support levels: 30D support at $0.1145 and 200D support at $1.7168. A breakdown below $0.0811 could trigger further panic selling, while a rebound above $0.1622 (30D resistance) might signal a temporary bounce. Given the lack of options liquidity and CJET’s hyper-volatility, aggressive shorting or cash-secured puts may be preferable for risk-tolerant traders.

Backtest Chijet Motor Stock Performance
The strategy you asked for—buying CJET.O the day after any ≥ 28 % intraday plunge since 2022—was back-tested. The outcome is extremely negative (≈ –99.9 % total return), illustrating that simply “catching the knife” in this stock has not worked historically.To explore the details interactively (statistics, equity curve, trade list, etc.), please view the module below.Notes on defaults we selected:• Trade entry price: next day’s closing price (common in event-driven testing when intraday data aren’t used). • No explicit sell rule or risk control: positions were held until the test end to isolate the entry signal’s efficacy. • Price source: daily closes, 2022-01-01 to 2025-09-16. Feel free to adjust parameters (e.g., profit-taking, stop-loss, holding period) if you’d like to test alternative exit or risk-control rules.

Urgent Action Needed as CJET Hits 52-Week Low
CJET’s collapse to its 52-week low signals a critical juncture for investors. With technical indicators pointing to extreme bearish exhaustion and sectoral headwinds persisting, the stock faces prolonged pressure until macroeconomic clarity emerges. Immediate focus should be on a breakdown below $0.0811 or a rebound above $0.1622. Tesla’s 2.23% gain offers a contrasting narrative, but CJET’s liquidity challenges and policy risks make it a high-risk proposition. Watch for $0.0811 support or regulatory clarity to gauge the next move.