Tesla announced the launch of a new, lower-priced version of its Model 3 sedan in Europe on Friday, two months after its debut in the United States. The company said the move is aimed at boosting sales amid intensifying competition and slowing demand.
Market Context
Industry reports indicated that Tesla has been grappling with softening demand across Europe, where new registrations have fallen sharply this year despite a refreshed Model Y line-up. Analysts noted that many buyers have opted for competitor vehicles such as the Volkswagen ID.3 and BYD’s Atto 3.
Model 3 Standard Feature
Tesla described the new Model 3 Standard on X as offering an “ultra-low cost of ownership.” The vehicle drops some premium finishes and features but delivers a driving range of over 300 miles (480 km).
Deliveries are expected to begin in the first quarter of 2026.
Pricing Across Europe
According to Tesla’s website, the Model 3 Standard is priced at:
- €37,970 ($44,299.60) in Germany
- 330,056 Norwegian crowns ($32,698) in Norway
- 449,990 Swedish crowns ($47,820) in Sweden
On the German site, the second cheapest Model 3, labeled “premium,” is listed at €45,970.
In the United States, Tesla introduced the Standard variant in October, where it currently sells for $36,990.
Strategic Shifts
CEO Elon Musk has long promised mass-market vehicles. However, last year he scrapped plans for an all-new $25,000 EV, opting instead to release lower-priced versions of existing models. Analysts have expressed concern that this strategy could cannibalize sales of higher-margin cars.
Tesla also launched a low-cost Model Y crossover in October as part of efforts to defend its market share against European and Chinese rivals, many of whom are offering EVs priced below $30,000.
Future Outlook
While Musk has been shifting Tesla’s focus toward artificial intelligence, robotaxis, and humanoid robots, industry observers noted that the new lower-priced vehicles remain critical to the company’s near-term revenue growth.
