Tesla profits down by more than half amid fall in demand

Tesla admitted it had faced 'numerous challenges' this year

Along with a drastic fall in profits, the electric vehicle manufacturer saw its revenues fall by nine per cent, to $21.3bn.

This is the biggest drop in revenue Tesla has reported since 2012, according to CNBC.

The company, of which Elon Musk is the CEO and largest shareholder, is one of the most valuable in the world.

However, in recent months it has experienced a drop in sales as demand for electric vehicles (EVs) fall.

In a summary released alongside the financial figures, the company admitted it had faced a "numerous challenges" this year.

It wrote: “We experienced numerous challenges in the [first quarter] from the Red Sea conflict and the arson attack at Gigafactory Berlin, to the gradual ramp of the updated Model 3 in Fremont.

“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs."

Earlier this month, Tesla reported that its sales had dropped by 8.5 per cent compared to the same period last year.

This was as Musk confirmed some 14,000 jobs would be axed from Tesla's global workforce.

The manufacturer sold 386,810 vehicles in the three months to the end of March, which was 13 per cent lower than market expectations, the Guardian reports.

Although this keeps the company as the world’s top seller of electric cars, the total is down by more than 20 per cent on the previous quarter.

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