Tesla’s profits have halved as the car maker sees increased competition and falling volumes. In return the company is gearing up to launch new models, reduce headcount and cut prices on existing lines.

The company, founded by Elon Musk, made $1.1bn on revenues of $21.3bn over the first quarter compared with $2.5bn last first quarter and has seen its share price pounded of late, but it has weathered such storms before, and a lot will be riding on what the mercurial Musk will do next.

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