Now's the time for Elon Musk to reveal his Tesla rescue plan — if he has one

• We're about to find out if Elon Musk has a plan to save Tesla.

• The EV maker is expected to report a 40% profit drop on Tuesday after a bruising year.

• Demand is falling, competition is rising, and a push to make robotaxis is worrying some investors.

If Elon Musk has a secret rescue plan for Tesla hidden away, now would be a great time to show it to the world.

On Tuesday, the company is due to report first-quarter earnings for Tesla after a decisively brutal year so far that's left his electric vehicle maker looking like a shell of its former self.

Since the start of the year, Tesla's share price has been in freefall, sliding more than 40%, leaving it worth about $460 billion. Musk's own fortune has suffered a $61 billion drop too, though he's still the world's fourth-richest person.

Tesla is facing a host of problems.

Demand for electric vehicles has seemingly been vaporized, with deliveries of Tesla's vehicles plummeting hard and fast. This month, Tesla said it delivered about 387,000 vehicles in the first three months of the year, marking a 20% decline from the previous quarter.

As a result, Tesla is expected to report a 40% profit drop on Tuesday, per Bloomberg, as well as its first revenue drop in four years. Last week, it emerged that it was laying off more than 10% of its staff globally as it adjusts to this new reality.

After the job cuts were announced last week, Wedbush analyst Dan Ives said Wall Street needed to know the "rationale for the cost-cutting, the strategy going forward, product roadmap, and an overall vision from Musk" on its investor call.

More price cuts

The demand issue has been particularly prominent in one of Tesla's most important growth markets, China. Musk has engaged in a high-risk price war in the country with local rivals such as BYD as they win more buyers with cheaper — and, some say, better — vehicles.