Tesla has introduced stripped-down Standard versions of its Model 3 sedan and Model Y SUV in Europe to counter declining sales. Priced at €36,990 and €39,990 respectively in markets like Germany, these models offer a 534 km WLTP range while cutting features to lower costs. The move aims to compete with rivals such as BYD and Volkswagen amid a 12.3% year-over-year sales drop in November.
Tesla's European sales have faced challenges, with registrations falling 12.3% year-over-year in November and over 36% when excluding Norway's incentive-driven spike. Year-to-date through October, registrations slipped roughly 30%. To address this, Tesla rolled out the Model 3 Standard and Model Y Standard trims around December 6, 2025, targeting budget-conscious buyers.
The Model 3 Standard starts at €36,990 in Germany, France, and Italy, undercutting the premium version by about €9,000. It delivers a WLTP range of 534 km (332 miles) and accelerates from 0 to 100 km/h in 6.2 seconds. Cost savings come from de-contenting: partially textile seats replace full vegan leather, the 8-inch rear display and heated rear seats are removed, the audio system is limited to seven speakers without subwoofer or amplifiers, and steel wheels with plastic covers substitute for alloys. The panoramic roof and light bars are also absent.
The Model Y Standard, priced at €39,990, matches the Model 3's range but sits closer to its premium counterpart, potentially limiting appeal. Both models emphasize Tesla's software, performance, and Supercharger network advantages.
This strategy positions the Model 3 €1,000 below the BYD Atto 3 at €37,990, offering more space and range than the Volkswagen ID.3 Pure (€29,760 with bonuses in Germany). The Model Y undercuts the VW ID.4 Pure (€40,335) slightly. Factors behind the sales slump include rising competition from Chinese and European makers, a stagnant lineup, and brand issues tied to CEO Elon Musk's activities.
Investor response was positive, with Tesla shares rising 1.7% to $454.53 on December 5, 2025. Meanwhile, sales in China jumped 10% year-over-year in November, and Norway hit a record 28,600 units by November, up 34.6% year-to-date. Deliveries of the new trims are set for early 2026.
