Apple and Tesla/ Shares of the tech giants are falling

Illustrative photo

Shares of Apple and Tesla have fallen on growing concerns about delays in their production lines in China. Apple shares hit their lowest point since June 2021. Tesla shares are down 73% from a record high in November 2021.

Companies have struggled to keep up production in China due to Covid restrictions and weeks of lockdowns. Now they are facing a staffing crisis as China battles a wave of Covid after lifting restrictions for years.

China announced it will lift its strict quarantine rules for travelers on Jan. 8, a positive sign for many investors who are eyeing an easing in supply chain movement in 2023.

But global investors are also being cautious ahead of rising interest rates, a slowing global economy and the ongoing war in Ukraine.

Given the increase in Covid cases in the main production centers, analysts say that production will take time to grow once again./ CNA.al

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