Tesla has rolled out a stripped-down version of its Model 3 in several European countries, pricing it below €37,000 to compete in a tightening market. The new variant sacrifices some features but maintains similar range and performance. This step comes amid growing pressure from Chinese and local rivals on electric vehicle prices.
Tesla introduced the Model 3 Standard across major European markets, aiming to undercut competitors by reducing the base price under €37,000 in various nations. This version sits about €3,000 below the current rear-wheel-drive Model 3, with specific pricing at €37,970 in Germany, €36,990 in France—where it misses out on local incentives due to importation—and 330,056 crowns in Norway and 449,990 crowns in Sweden.
To achieve these lower costs, Tesla eliminated several amenities, including ambient interior lighting, the rear-seat touchscreen, heated rear seats, and power-adjustable steering wheel. The audio setup now has seven speakers instead of nine, exterior mirrors lack automatic dimming, and seats switch from synthetic leather to fabric without ventilation. Analysis from the US suggests underlying changes like smaller battery capacity and hardware tweaks, preserving a range of around 500 km under typical test cycles.
This launch builds on recent affordable Model Y options in Europe and responds to intensifying competition. As Chinese manufacturers gain ground and European automakers introduce their own entry-level battery-electric vehicles, Tesla's approach could influence industry strategies on balancing cost and features in the midsize segment. The move highlights a broader trend of declining electric vehicle prices, potentially affecting supply chains and design choices for original equipment manufacturers and their suppliers.