Apple and Tesla's share prices fall down amidst supply chain issues

Apple and Tesla's stocks have recently decreased due to ongoing issues with production in China. These problems have been caused by Covid-19 restrictions and lockdowns, as well as a staffing shortage after a recent increase in Covid-19 cases in the country, as per a report from BBC news. In addition, global investors are concerned about potential interest rate hikes, a potential economic slowdown, and the ongoing conflict in Ukraine.

Apple supplier Foxconn reported an 11 per cent decrease in revenue for November 2021 compared to the same month the previous year, which has been attributed to unrest at its Zhangzhou plant. There have also been reports that Tesla's Shanghai manufacturing plant has reduced production due to rising Covid-19 infections in China, though the company has not commented on these reports, analysts have suggested that Tesla's recent sales struggles are evident in the fact that the company has offered discounts to customers in both China and North America.

Investors are concerned about Elon Musk

Some investors have also raised concerns about CEO Elon Musk, who has recently made headlines for controversial actions and has been actively using Twitter. This has led some to believe that he is distracted from his responsibilities as CEO, which has contributed to the decline in Tesla's share price. Last week, Musk asked Twitter users if he should continue as head of the platform and, when they voted no, he announced his intention to resign once a replacement is found. Some analysts have called for Musk to rebuild investors' and board members' confidence and focus more on leading Tesla through its current challenges.