Apple and Tesla stocks have tumbled over growing concerns about delays in their production lines in China.

Apple shares hit their lowest point since June 2021. Tesla’s stock has dropped 73% from a record high in November 2021.

Companies have struggled to keep production going in China due to Covid restrictions and weeks of lockdowns.

Now they are facing a staffing crunch as China battles a Covid wave after lifting years of restrictions.

China announced that it will lift its strict quarantine rules for travellers on 8 January, a positive sign for many investors who are seeing an ease in supply chain movement in 2023.

But global investors are also being cautious ahead of additional interest rate hikes, a global economic slowdown and the ongoing war in Ukraine.

Given the spike in Covid cases in key manufacturing hubs, analysts say production will take time to ramp up once again.