STOCKHOLM, Dec 5 (Reuters) – Tesla launched the new, lower-priced version of its Model 3 car in Europe on Friday, two months after its U.S. debut, aiming to boost sales as competition intensifies and demand wanes.
Tesla is struggling with reduced demand across Europe, where new registrations have fallen sharply this year despite a revamped Model Y lineup, with many buyers opting for competing vehicles such as Volkswagen’s ID.3 and Chinese manufacturer BYD’s Atto 3.
The Model 3 — which Tesla describes in an X post as having an ‘ultra-low cost of ownership’ — leaves out some premium finishes and features, but offers a driving range of over 300 miles. Deliveries are expected to begin in the first quarter of 2026.
Chief Executive Elon Musk has long promised mass-market vehicles, although last year he scrapped plans for a new $25,000 EV, opting instead to build lower-priced versions of existing models, a move that has raised concerns among analysts about cannibalizing sales of higher-margin cars.
A low-cost Model Y crossover was launched in October as Tesla seeks to defend its market share against European and Chinese rivals offering increasingly cheaper electric cars in Europe, with many selling EVs under $30,000.
The new Model 3 Standard is priced at 37,970 euros ($44,299.60) in Germany, 330,056 Norwegian kroner ($32,698) in Norway and 449,990 Swedish kronor ($47,820) in Sweden, according to Tesla’s website. On its German website, the second cheapest Model 3, called ‘premium’, costs 45,970 euros.
Continues after advertising
Tesla launched the Standard variant of the Model 3 in October in the US, where it currently retails for US$36,990.
