Tesla has introduced a lower-priced Model 3 Standard in Europe to counter declining sales and competition. The base model starts at €36,990 in Germany, offering 534 km of range but with reduced features. This move follows similar launches in the US and aims to broaden appeal amid backlash against CEO Elon Musk.
On December 5, 2025, Tesla launched the Model 3 Standard in Europe, positioning it as the most affordable version of its popular sedan. Priced at €36,990 in Germany, France, and Italy, the model undercuts competitors like BYD's Atto 3 at €37,990. In Nordic countries, it costs 330,056 Norwegian kroner and 449,990 Swedish kronor. The vehicle delivers 534 km of WLTP range and accelerates from 0 to 100 km/h in 6.2 seconds, though it sacrifices some luxuries compared to the €44,990 Premium trim.
Key compromises include partial textile seats instead of full vegan leather, removal of the 8-inch rear touchscreen and heated rear seats, a downgrade to seven speakers without subwoofer, and steel wheels with plastic covers replacing alloys. It also uses basic passive shock absorbers rather than frequency-dependent ones. Unlike US versions, the European model includes an FM radio and digital radio, a feature omitted in higher US trims to save costs of about $50–70 per car. Both the Model 3 and Model Y Standard retain the panoramic glass roof.
The Model Y Standard, launched in Europe in October and now in the UK at £41,990, shares similar de-contenting and offers the same 534 km range at €39,990 in main markets. Tesla's sales in Europe fell 12.3% year-over-year in November, with steeper drops excluding Norway—over 36%—and overall regional sales down about 30% through October. In Germany, registrations dropped 20% while BYD's surged 834% to 4,026 units. France saw a 58% decline to 1,593 vehicles, and the UK 19%.
CEO Elon Musk stated the cheaper option will 'reinvigorate demand by appealing to a wider range of buyers.' Sales slumps stem from competition, weakening EV demand, and backlash over Musk's political activities, including his role in the Trump administration's 'department of government efficiency'—from which he quit in May—and support for far-right causes. UK critics warn new EV taxes, like a 3p-per-mile road charge from 2028 costing about £250 annually, could further hinder adoption. Mike Hawes, SMMT chief executive, called slow November growth of 3.6% a 'wake-up call' to encourage EV switches.
