1: apple and tesla stocks have taken a hit recently due to production delays in china. companies have been unable to keep up production due to the covid restrictions and lockdowns in the country. foxconn, an apple supplier, experienced unrest at its zhangzhou plant, while tesla’s shanghai manufacturing plant was forced to cut production due to rising covid cases. elon musk, tesla’s chief executive, has also been in the news due to his controversial tweets and his recent announcement that he would resign from twitter.
2: china announced it would lift its quarantine rules on 8 january, but it will take time for production to ramp up again due to the surge in covid cases in key manufacturing hubs. apple shares hit their lowest point since june 2021, while tesla’s stock has dropped 73% from its record high in november 2021. foxconn reported that its revenue in november 2021 was 11% lower than the same month in 2021.
3: the global investors have become cautious due to the additional interest rate hikes, the global economic slowdown and the ongoing war in ukraine. tesla has offered discounts to both chinese and north american customers in an attempt to boost sales. elon musk needs to rebuild investors’ and board members’ confidence, but his drawn-out legal battle with twitter and his focus on running the social media platform have not helped.