Tech giant Apple and electric car major Tesla are witnessing major tumble in their share prices as concerns mount over delays in their production lines amid Covid crisis in China. Both companies have struggled to keep their manufacturing on track as China grapples with fresh wave of Covid infections.
Apple stocks have tumbled to the lowest since June 2021. For Tesla, the tumble is of 73 per cent from a record high in November 2021.
Apple supplier Foxconn says its revenue in November was down 11 per cent compared with the same month in 2021, following unrest at its Zhangzhou plant known as “iPhone City.”
Watch | China: Tesla halts production at Shanghai plant; year-end closure comes as Covid cases rise
This week, media reports said Tesla’s Shanghai manufacturing plant had cut production as Covid infections rose in China. The company declined to comment.
But analysts say the company’s sluggish sales are evident in the fact that it has offered discounts to both Chinese and North American customers, BBC reported.
Also Read | Tesla’s Wall Street fortunes plummet by two-third since Elon Musk’s Twitter takeover
Investors have also raised concerns about Tesla’s chief executive Elon Musk, who has repeatedly made controversial headlines. He took over Twitter in October after a drawn-out legal battle and since then Musk has focused a significant amount of his time on running the social media platform. Some have cited his alleged distraction during this time as another reason for the fall in Tesla’s share price.
(With inputs from agencies)
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