Erayak Power (RAYA) Plunges 22% Amid Reverse Split and Delisting Fears: A High-Risk Catalyst Unfolds

Summary
• Erayak Power (RAYA) slumps 22.1% to $0.0359, trading near its 52-week low of $0.0345
• Company announces 220-for-1 reverse stock split effective September 30, 2025
• Nasdaq delisting notice received earlier this month, triggering shareholder uncertainty
• Turnover surges to 41.7 million shares, reflecting heightened volatility and liquidity concerns

Erayak Power’s shares are in freefall as a combination of corporate governance actions and regulatory threats collide. The stock’s intraday low of $0.0355 signals a critical juncture for investors, with the reverse split and delisting risk amplifying short-term volatility. Market participants are now weighing whether this is a distressed asset play or a warning sign of deeper operational challenges.

Reverse Split and Delisting Threats Trigger Flight to Safety
Erayak Power’s 22% intraday plunge is directly tied to its announced 220-for-1 reverse stock split and ongoing Nasdaq delisting proceedings. The reverse split, approved by shareholders on September 8, aims to raise the per-share price to meet exchange requirements but signals underlying financial strain. Compounding this, the company received a delisting notice on September 9, 2025, citing failure to maintain a minimum bid price. These actions have triggered a liquidity crunch, with turnover hitting 31.56% of the float, as investors rush to exit or hedge positions. The stock’s collapse to $0.0359—a 72% discount from its 52-week high of $3.35—reflects a loss of institutional confidence and speculative selling pressure.

Electrical Equipment & Parts Sector Under Pressure
The Electrical Equipment & Parts sector is broadly underperforming, with peers like Dragonfly Energy (DFLI) and Stardust Power (SDST) down 9.5% and 0.32%, respectively. However, RAYA’s move is uniquely severe due to its delisting risk and governance issues. While sector-wide concerns about renewable energy market saturation exist, RAYA’s collapse is more a function of corporate-specific distress than macroeconomic trends. This divergence highlights the stock’s speculative nature and the heightened risk of capital erosion for holders.

Navigating RAYA’s Volatility: ETFs and Technicals in Focus
• 200-day MA: $1.1779 (far above current price, bearish signal)
• RSI: 54.43 (neutral, but trending lower)
• Bollinger Bands: Price at $0.0359, near the lower band ($0.02945), suggesting oversold conditions
• MACD: -0.0551 (negative momentum, bearish divergence)

RAYA’s technical profile is deeply bearish, with the 200-day MA acting as a massive overhang and the RSI failing to generate bullish divergence. The stock is trading in a tight range between $0.0355 and $0.0461, with key support at $0.0345 (52-week low) and resistance at $0.0461 (open price). Given the delisting risk and lack of options liquidity, ETFs like the Invesco Solar Energy ETF (TAN) or the iShares Global Clean Energy ETF (ICLN) offer safer exposure to the broader sector. Aggressive short-term traders may consider cash-secured puts if the stock breaks below $0.0345, but the absence of listed options limits hedging opportunities.

Backtest Erayak Power Stock Performance
Below is the event-study back-test you requested. The analysis covers every trading day from 2022-01-01 through 2025-09-28 in which RAYA.O suffered an intraday draw-down of at least 22 %. A 30-day post-event window was evaluated using close prices.Key findings (high-level):• 54 qualifying plunges were detected. • In the 30 trading days that followed, the average cumulative excess return was –15.6 %, with statistically significant under-performance beginning around day 9 and persisting through day 30. • The win-rate never exceeded 48 % at any point in the window, indicating limited short-term mean-reversion after such sharp intraday shocks.(Parameters automatically filled: default close-price series, a 30-day evaluation horizon, and the full available data range 2022-01-01 – 2025-09-28 because the user did not specify otherwise.)You can explore the detailed distribution of returns and other statistics in the interactive module below.Feel free to open the module to see the full event-study charts, cumulative P&L curves, and day-by-day statistics.

RAYA’s Delisting Clock Ticks: Immediate Action Required
Erayak Power’s stock is in a death spiral, driven by a reverse split and delisting threat that erode investor trust. The 22% intraday drop underscores the urgency for shareholders to act, either by exiting positions or hedging against further declines. With the stock trading near its 52-week low and no options liquidity to cushion the fall, the path forward is fraught with risk. Meanwhile, sector leader Tesla (TSLA) is up 0.42%, highlighting the stark contrast between speculative distressed assets and resilient industry leaders. Investors must monitor RAYA’s compliance with Nasdaq requirements and the success of its reverse split, but the writing is on the wall: this is a high-risk, high-reward scenario with limited upside and significant downside.