Erayak Power Solution Group Inc. (NASDAQ:RAYA) slid Monday even as storm-driven demand sent generator sales soaring, with investors focusing on inventory constraints and deep technical weakness over the near-term revenue surge.

The company's stock continued to slide even after the company announced the demand update on Friday, as Erayak said rapid order growth has tightened some U.S. inventory positions while it works to replenish supply.

20x Sales Spike Amid Severe Weather

Over the past few days, Erayak has seen daily unit sales increase by more than 20 times its average, with nearly 1,000 units shipped in just 2 days. The company is actively working to replenish its inventory and expedite production to meet this heightened demand, which reflects consumer preparedness for potential power outages due to extreme weather.

In addition to the surge in sales, Erayak plans to introduce new home emergency power solutions in the second quarter of 2026, including gasoline inverter generators and multi-fuel models. This expansion aligns with the company’s strategy to enhance its product offerings in the North American market, aiming to capitalize on the growing demand for reliable power solutions.

The broader market is trading mixed today, with the S&P 500 up 0.58% and the Nasdaq up 0.62%. However, the Utilities sector is showing strength, up 1.02%, while the Russell 2000 is slightly down by 0.14%.

Despite these positive market trends, Erayak’s stock is underperforming, suggesting that company-specific concerns are driving the decline.

Erayak’s Bearish Technical Indicators

Currently, the stock is trading 57.8% below its 20-day simple moving average (SMA) and 73.7% below its 100-day SMA, indicating a significant bearish trend. Over the past 12 months, shares have decreased by 99.48%, and the stock is positioned closer to its 52-week low of $1.39 than its high of $737.00.

The RSI is currently at 29.70, indicating the stock is oversold, while the MACD is below its signal line, suggesting bearish momentum. The combination of oversold RSI and bearish MACD indicates mixed momentum for the stock.

• Key Resistance: $3.50
• Key Support: $1.40

Erayak’s Power Solution Product Line

Erayak Power Solution Group engages in manufacturing, research and development, and wholesale and retail of power solution products. Its product portfolio includes sine wave and off-grid inverters, inverter and gasoline generators, battery, and smart chargers, and custom-designed products.

The company derives the majority of its revenue from four products: inverters, chargers, power banks, and gasoline generators, with inverters being the primary revenue source. Geographically, Erayak operates in China, Australia, Poland, the U.K., and Germany, with the majority of its revenue coming from China.

RAYA Price Action: Erayak Power Solution Group shares were down 18.33% at $1.470 at the time of publication on Monday. The stock is trading near its 52-week low of $1.39, according to Benzinga Pro data.

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