Chijet Motor Surges 24% Amidst Turbulent Financials and Regulatory Scrutiny – What’s Fueling the Rally?

Summary
• Chijet Motor (CJET) surges 24.47% intraday to $0.1007, defying a $61.5M loss and 82% revenue collapse.
• Turnover hits 27 million shares, with a 31.98% turnover rate amid a 52-week low of $0.077.
• Nasdaq compliance warning looms as bid price falls below $1.00 threshold.

Chijet Motor’s stock has erupted 24.47% in a single trading session, trading at $0.1007 as of 2:04 PM ET. The surge defies a dire financial backdrop: a $61.5M net loss, 82% revenue plunge, and a $471M working capital deficit. With turnover exceeding 27 million shares and a 52-week low of $0.077, the move raises urgent questions about speculative fervor versus fundamental collapse.

Operational Collapse and Liquidity Crisis Ignite Volatility
Chijet Motor’s 24.47% intraday surge is a paradoxical reaction to its catastrophic financial disclosures. The company reported a $61.5M net loss for H1 2025, driven by a 349% spike in SG&A expenses from $47M in severance costs tied to FAW Jilin restructuring. Revenue collapsed 82% to $599K, with vehicle sales plummeting from 892 units in H1 2024 to just 94 units. A $97M loan default triggered asset auctions, while a $271M debt to related parties and a $471M working capital deficit cast doubt on its viability. The rally appears fueled by speculative bets on short-term liquidity measures, such as the $7.44M September public offering, despite management’s explicit warning of substantial doubt about the company’s ability to continue as a going concern.

EV Sector Volatility Amidst Mixed Signals as Tesla Trails
The EV sector remains fragmented, with Tesla (TSLA) down 0.47% intraday despite its dominance. Chijet’s 24.47% surge contrasts sharply with peers like Bollinger (BINI) and Polestar (PSNY), which trade in negative territory. While Tesla’s decline reflects macroeconomic headwinds, Chijet’s move underscores speculative trading in distressed assets. The sector’s mixed performance highlights divergent investor sentiment: long-term skepticism toward EVs versus short-term opportunism in overleveraged names.

Technical Indicators Signal Deep Bearish Bias – ETFs and Short-Term Plays
• 200-day MA: $1.538 (far above current price)
• RSI: 17.92 (oversold territory)
• MACD: -0.121 (bearish divergence)
• Bollinger Bands: $0.0848–$0.1977 (current price near lower band)

Chijet’s technicals paint a dire picture. The RSI at 17.92 suggests extreme oversold conditions, but this often precedes a rebound in highly volatile stocks. The 200-day MA at $1.538 is a distant target, while the MACD’s bearish divergence (-0.121) and Bollinger Bands ($0.0848–$0.1977) indicate a potential short-term bounce from the lower band. However, the 52-week high of $2.99 is a distant dream. Aggressive short-term traders might consider a short bias if the $0.1043 intraday high fails to hold, with a stop-loss at $0.1145 (30D support). No leveraged ETFs are available for CJET, but sector ETFs like XLE (Energy Select Sector SPDR) or XLF (Financial Select Sector SPDR) could offer indirect exposure to liquidity-driven rallies.

Backtest Chijet Motor Stock Performance
I’ve successfully retrieved CJET’s full daily OHLC history (2022-01-01 → 2025-10-22). When I tried to let the system extract every day whose intraday move (High-to-Open) was ≥ 24 %, the automated event-date calculator returned an internal error (“code_result not found”).This means the platform didn’t finish generating the surge-date list that we need for the back-test.Next steps – two options:1. Retry the automatic extraction • I’ll resubmit the request with a simplified query or break the data into smaller blocks to avoid the error. 2. Provide the event dates manually • If you already know some of the 24 %-surge dates (or if you can share even a partial list), I can feed them directly into the event back-test engine while we work on the full list.Please let me know which route you prefer (or if you’d like me to try another workaround).

Urgent Caution Advised as CJET Faces Existential Risks – Immediate Action Required
Chijet Motor’s 24.47% surge is a fleeting spark in a firestorm of financial collapse. With a $471M working capital deficit, $271M related-party debt, and a $97M loan default triggering asset auctions, the stock’s technical rebound is unlikely to sustain. Investors must watch the $0.1043 intraday high for a breakdown, which could trigger a freefall toward the 52-week low of $0.077. Meanwhile, Tesla’s -0.47% decline underscores broader sector fragility. Immediate action: short CJET if the $0.1043 level fails, or exit long positions as liquidity risks escalate. The Nasdaq compliance clock ticks until April 13, 2026, but survival seems improbable without a reverse split or miracle capital infusion.