Tesla and Apple’s stocks tumble amid supply issue

Apple and Tesla stocks have fallen due to mounting concerns over production line delays in China

Apple’s stock reached its lowest level since June 2021. From its record high in November 2021, Tesla’s stock has fallen 73%. Due to COVID restrictions and weeks of lockdowns, businesses have struggled to maintain production in China. Now they are facing a staffing shortage as China battles a COVID wave after years of restrictions were lifted.

Before more interest rate hikes, a slowdown in the global economy, and the ongoing conflict in Ukraine, investors around the world are being careful. Because of problems at its “iPhone City” plant in Zhangzhou,, China, Apple supplier Foxconn said that its November sales were 11% lower than they were in November 2021.

This week media reports stated that Tesla’s Shanghai manufacturing facility had reduced production due to an increase in COVID infections in China. Analysts says, though that the company’s decision to offer discounts to both Chinese and North America customers shows that sales have been slow.