American electric vehicles manufacturer Tesla has announced a profit fall of 55 per cent, to $1.1 billion from the first quarter of 2023 while revenue dropped by nine per cent, to $21.3 billion for the same timeframe for 2024.

The latest figures announced by Tesla for the first quarter of this year earlier this week represent a significant drop compared to the accounting reported by the automaker for the same period last year, caused by lack of buyers for the company’s cars.

According to the New York Times, the financial outcome is due to slow sales of Tesla cars, which has reportedly kept investors on the edge over the thought of the company led by billionaire Elon Musk losing its feet in the electric vehicle market.

Earlier this month, Tesla had announced a 8.5 per cent car sales drop from its performance in the first quarter of 2023 with the company already starting laying off thousands of workers as it plans to cut 14,000 jobs.

Tesla’s tepid sales have massively impacted the company’s earnings. In the first quarter of 2023, the company made $2.5 billion in profit, which is one of the best profit margins in the industry.

The decline in sales forced the automaker to reduce the price of its cars. But the idea seemed to work for a short period but sales have started falling again as Tesla struggles to attract buyers, the Times reported.

There is reportedly a growing concern among Tesla investors that the company’s sales and profit drop may be part of a  bigger problem, which could mean the automaker is failing to positively respond to emerging and established competition from China electric vehicles manufacturers.