Tesla reported its first quarter earnings during an incredibly shaky moment for the company in which sales numbers and the stock price have both fallen. Against this backdrop, Tesla reported $1.1 billion in net income on $21 billion in revenue, down 9 percent from $23.3 billion the same time last year.

The company’s profits, once the envy of the auto industry, are at their lowest in six years thanks to rampant price cutting and slowing demand. Earlier this week, the company approved its latest price cuts for the US, China, and Germany — all major markets for the EV maker.

Tesla’s Q1 operating margins is 5.5 percent, down from 11.4 percent in Q1 2023. In a note to shareholders, the company blames an industry-wide shift from battery-electric vehicles to hybrids.

“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” the company states, while acknowledging the “numerous challenges” during the first quarter. “While positive for our regulatory credits business, we prefer the industry to continue pushing EV adoption, which is in-line with our mission.”

Tesla CEO Elon Musk is expected to face pointed questions from investors on these numbers as well as recent reports that the company has paused development of a new low-cost “Model 2” electric vehicle that was expected to come in at $25,000. Musk reportedly delayed the project, preferring to go “balls to the wall” on Tesla’s forthcoming robotaxi, which is expected to debut in August. Investors had pinned their hopes on the Model 2 spurring the company’s next wave of growth.

Earlier this year, Tesla reported lackluster sales numbers in a sign that cooling demand for EVs and rising competition were taking their toll on the company. Tesla said it delivered 386,810 vehicles in the first three months of the year, an 8.6 percent drop compared to the first quarter of 2023. The company had earlier predicted slowed 2024 growth as it prepared to begin new vehicle production in 2025.

Soon after, the company said it would lay off 10 percent of its global workforce, or about 14,000 people. Bloomberg reported that the layoffs could ultimately reach 20 percent of the company’s employees.