Telsa Inc was expected to unveil yesterday a more affordable version of its best-selling Model Y sport utility vehicle (SUV), as the electric vehicle (EV) maker seeks to reverse falling sales and waning market share amid rising global competition.

Chief executive Elon Musk, for years, has promised mass-market vehicles, though last year he cancelled plans to build an all-new US$25,000 EV, Reuters first reported. The car expected this week is an "affordable" vehicle based on current manufacturing and design platforms.

Tesla posted two clips on X over the weekend, igniting excitement among Tesla fans. One video shows headlights peering out of the dark and another shows what looks like a wheel spinning for a few seconds, followed by "10/7", the United States format for the date Oct 7.

Neither Tesla nor influencers have indicated that an in-person event is in the works, in contrast to previous major Tesla launches.

Still, analysts, investors and fans expect the company to make some kind of announcement. Major questions include the car's price, driving range and efforts to strip down costs.

Last year, Musk said the vehicle would be priced below the "key threshold" of US$30,000, including US EV tax credits.

In the US, prices effectively rose by US$7,500 at the end of last month, when the credit ended. That helped goose quarterly sales to a record, but expectations are that they will slow down for the rest of the year, unless the affordable car comes to the rescue.

Musk initially promised that production of the vehicle would start by the end of June.

But Tesla only made what it called "first builds" of the car, it said in July, adding that it would be available for customers sometime in the last three months of the year.

Tesla has been grappling with slowing sales of its ageing lineup as competition has grown rapidly, especially in China and Europe, where Musk's far-right political views have also undermined brand loyalty.