Why Is Chijet Motor Stock (CJET) Plunging 20% Today?

Chijet Motor Company (CJET) just hit a brutal 20% nosedive—and the market's asking why.

Market Whiplash Strikes Again

Traders woke up to a sea of red as CJET shares cratered without immediate explanation. The 20% drop echoes classic volatility patterns in emerging automotive stocks—especially those tied to electric vehicle hype cycles.

Speculative Fever Cools Off

No fundamental news triggered the sell-off, pointing to profit-taking or sector rotation. Retail investors often pile into niche auto stocks during bull runs, then bolt at the first sign of turbulence. Classic case of weak hands meeting sharp volatility.

Big Picture Realities

Single-day plunges like this underscore why traditional equity markets remain a casino—while crypto markets at least never pretend to be anything else.

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Chijet Motor announced the delay due to an amendment to the matters that investors will vote on during the shareholder meeting. The company has introduced a new vote on a share consolidation. It will seek investor approval for a reverse stock split that will combine 100 shares of CJET stock into a single share, which will boost the price of the shares. This might be necessary for the company as it’s listed on the Nasdaq Capital Market, which has a minimum bid price requirement of $1 per share, compared to the 9 cents per share that CJET traded for today.

Chijet Motor doesn’t just plan to consolidate shares at its next shareholder meeting. The company also wants investors to approve a name change. This WOULD see it switch to the name “Digital Currency X Technology Inc.” This name change suggests that Chijet Motor could switch its focus from EVs to cryptocurrency, though investors will have to wait to learn more about that.

Chijet Motor Stock Movement Today

Chijet Motor stock was down 19.83% in pre-market trading on Tuesday, following an 8.58% fall yesterday. The shares have also decreased 95.06% year-to-date and 95.82% over the past 12 months. Today’s news came with strong trading, as some 3.2 million shares changed hands. That’s closing in on the company’s three-month daily average of about 4.1 million shares.

Is Chijet Motor Stock a Buy, Sell, or Hold?

Turning to Wall Street, analysts’ coverage of Chijet Motor is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates CJET stock an Underperform (11) with no price target. It cites “severe financial and operational challenges, with negative profitability, high leverage, and liquidity issues” as reasons for this stance.