Erayak Power (RAYA) Surges 17.9% Amid Delisting Drama and Reverse Split Vote: What’s Fueling the Volatility?

Summary
• Erayak Power (RAYA) surges 17.9% to $0.0724, trading near 52-week high of $3.35
• Shareholders approve 1:220 reverse stock split to avoid Nasdaq delisting
• $7M funding round and regulatory filings highlight liquidity pressures
• Intraday range of $0.065–$0.0822 signals aggressive short-term positioning

RAYA’s explosive 17.9% rally on September 24, 2025, reflects a high-stakes battle to avoid delisting and secure shareholder approval for a reverse stock split. With a 52-week low of $0.0345 and a dynamic PE of -12.77, the stock’s volatility underscores its precarious liquidity position. The $7M registered direct offering and recent governance changes signal a desperate bid to stabilize operations while navigating regulatory hurdles.

Delisting Threat and Reverse Split Vote Ignite Short-Term Frenzy
RAYA’s 17.9% surge stems from a critical Nasdaq delisting notice and shareholder approval of a 1:220 reverse stock split. On September 9, the company received a delisting determination due to failing the $1 bid price rule (5810(c)(3)(A)(iii)) and the $100M market cap threshold (5450(a)(1)). Shareholders overwhelmingly approved the reverse split at an EGM on September 8, granting the board discretion to execute the split within one year. This move aims to boost the stock price and comply with listing requirements, triggering a short-term rally as traders anticipate regulatory relief and potential liquidity improvements.

Electrical Equipment & Parts Sector Mixed as RAYA Defies Downtrend
The Electrical Equipment & Parts sector, led by ETN (Eaton Corp), saw a 1.16% intraday gain, contrasting RAYA’s volatility. While peers like ABB and Schneider Electric reported stable operations, RAYA’s delisting risk and reverse split vote created a divergent narrative. The sector’s broader resilience—driven by energy transition demand—highlights RAYA’s unique challenges, including its -12.77 dynamic PE and 52-week low of $0.0345. RAYA’s rally reflects speculative positioning rather than sector-wide momentum.

Technical Analysis and Options Strategy Amid Regulatory Uncertainty
• 200-day MA: $1.195 (far above current price)
• RSI: 63.85 (neutral to overbought)
• Bollinger Bands: Upper $0.0649, Middle $0.048, Lower $0.031 (current price near upper band)
• MACD: -0.069 (bearish), Signal Line -0.102 (bearish)

RAYA’s technicals suggest a short-term bullish breakout but long-term bearish trend. Key levels to watch include the 30D support ($0.0475–$0.0481) and 200D resistance ($1.25–$1.31). With no options data available, focus remains on technicals: a break above $0.0822 (intraday high) could trigger a test of the 52-week high ($3.35), while a drop below $0.065 (intraday low) may accelerate delisting fears. Aggressive bulls may consider a long call strategy if the reverse split is executed, but liquidity risks remain high.

Backtest Erayak Power Stock Performance
Key take-aways• Frequency: 19 instances since 2022 where RAYA.O rallied ≥ 18 % intraday. • Subsequent trend: the average close-to-close performance over the next 30 trading days is –12.9 % versus –1.5 % for the benchmark, with the bulk of the under-performance emerging in the first two weeks. • Risk/reward: win-rate never exceeds 37 % on any day in the 30-day window; the 3- to 5-day horizon shows the deepest drawdowns (–10 % to –13 %), statistically significant at the 5 % level. • Interpretation: large one-day bursts in this micro-cap tend to be exhaustion moves rather than the start of a sustainable up-leg.Parameter notes (auto-filled)1. Analysis window: default 30 days post-event—industry standard for single-stock event studies when horizon is unspecified. 2. Price basis: close price, because the user asked for “performance” instead of intraday trading strategy. 3. Back-test period: 2022-01-01 (first full calendar year after IPO) through the current date 2025-09-24. 4. Event filter: daily_pct_change ≥ 18 % extracted from historical OHLC data. You can explore the full event-study visualization below.(Open or refresh the canvas if the chart does not load automatically.)

Act Now: RAYA’s Delisting Clock Ticks—Reverse Split Could Be Lifeline or Catalyst for Collapse
RAYA’s 17.9% surge reflects a high-stakes gamble to avoid delisting, but sustainability hinges on the reverse stock split’s execution and $7M funding’s impact on liquidity. Traders should monitor the 30D support ($0.0475) and 200D resistance ($1.25) as critical inflection points. With ETN (Eaton) up 1.16% today, the sector’s broader strength contrasts RAYA’s fragility. Investors must weigh regulatory risks against speculative upside: a successful reverse split could stabilize the stock, while failure may trigger a collapse. Watch for Nasdaq’s final ruling by September 12 and the reverse split’s implementation timeline.