Tesla is aiming to boost sales in the face of slowing demand and increasing competition by launching a lower-priced Model 3 version in the European market two months after its US launch. The company is struggling with weakening electric vehicle demand across Europe this year; despite the new Model Y update, Tesla registrations have seen a significant drop, with many consumers turning to competitors such as the Volkswagen ID.3 and the Chinese BYD Atto 3.
The new Model 3 Standard offers a package that Tesla describes as “ultra-low cost of ownership” on its X platform. While sacrificing some premium features, the vehicle provides a range of over 300 miles (480 km). European deliveries are planned to begin in the first quarter of 2026.
Elon Musk has long promised more accessible electric vehicles, but last year he shelved plans for an entirely new $25,000 model, instead focusing on lower-priced versions of existing vehicles.
This change has raised concerns among analysts that sales of high-margin models may be weakened by internal competition.Tesla is also trying to maintain its position against Chinese and European electric vehicles, which are priced below $30,000 in Europe, by launching a cheaper Model Y in October.
According to Tesla’s regional websites, the new Model 3 Standard is listed at €37,970 in Germany, €330,056 in Norway, and €449,990 in Sweden. The top-of-the-line “premium” Model 3 in Germany starts at €45,970.
The Standard version, which went on sale in the US in October, is priced at $36,990.Although Musk has recently shifted the company’s focus to artificial intelligence projects, robotaxies, and humanoid robots, new affordable models are critically important for Tesla’s short-term revenue growth expectations.
