Tesla Chief Executive Elon Musk said on Wednesday that U.S. government cuts in support for electric vehicle makers could lead to a "few rough quarters" for the company before a wave of revenue from self-driving software and services begins late next year.

Tesla said on Wednesday it has built initial versions of an affordable car, a move likely meant to stem the steep decline in sales the company has experienced in markets across the world.

Tesla had said in April it would start producing the model by the end of the first half and sources had told Reuters the ve