Tesla's chief financial officer, Vaibhav Taneja, said that President Donald Trump's tax bill could affect the availability of its cars.

Tesla says it's building a more affordable model and expects to launch its self-driving software in Europe this year, moves aimed at reviving a business hit by falling sales, tighter U.S. tax rules, and rising competition from China.

The European chip maker expects third-quarter revenue to be down 2.5% on year, but nearly 15% higher from the second quarter.

Tesla’s sales are slipping as it prepares to lose the $7,500 EV tax credit—raising stakes in an increasingly competitive market.

In stocks, Nvidia more than 1% rose as investors await Alphabet GOOGL earnings at market close. Shares also rose following a Wall Street Journal report that Tesla TSLA Chief Executive Elon Musk's xAI startup is looking to raise up to $12 billion to buy Nvidia chips to train xAI's Grok chatbot.

He said his ownership stake is "a major concern," noting he hoped the Tesla board addresses the issue at its annual shareholder meeting in November.