Tesla last night warned that tariff wars and political upheaval could take its toll on demand – as it reported a slump in both sales and profits.

The electric car maker last night revealed it missed analyst expectations as earnings tumbled by 71 per cent to £307million and car sales fell 20 per cent to £10.5billion in the first quarter.

It comes after demand for Tesla’s vehicles tanked amid the controversy surrounding Tesla chief exec Musk, a close ally of the US president. 

Investors are also concerned about growing competition from cheaper rivals and that Musk’s position in the Trump administration has pulled his attention away from Tesla.

Ahead of the earnings report, Wedbush analyst Dan Ives warned Musk was facing a ‘code red situation’ if he continues his government role.

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