Chijet Motor Plunges 13.88% on Dilutive Offering

Chijet Motor Company, Inc. experienced a significant drop of 13.88% in pre-market trading on September 4, 2025, reflecting a notable decline in investor sentiment.

Chijet Motor Company, Inc. recently announced the pricing of its public offering, raising $8.0 million through the issuance of 13,560,000 Class A ordinary shares and accompanying warrants. The offering was priced at $0.59 per share, which is significantly below recent trading prices, indicating potential financial stress despite the company's expansion plans.

The warrants issued as part of the offering have a 5-year expiration period and are immediately exercisable at $0.59 per share, with a zero-cash exercise option allowing holders to exchange each warrant for two Class A ordinary shares. This structure suggests that Chijet may be facing challenges in attracting investment on favorable terms, as the aggressive terms and immediate exercisability indicate urgency in the capital raising process.

The company plans to use the net proceeds from this offering for the acquisition of new businesses, corporate management, talent recruitment, and general working capital purposes. However, the broad allocation of funds raises questions about the company's immediate priorities and financial planning, especially given the competitive nature of the automotive sector and the capital-intensive NEV market.