STOCKHOLM – Tesla (TSLA.O) has officially launched a new, lower-priced version of its Model 3 electric vehicle in Europe, following its U.S. debut two months ago. The move comes as Tesla faces softening demand across European markets and increasing competition from European and Chinese electric vehicle manufacturers.
Tesla’s Strategy to Boost Sales in Europe
The new Model 3 Standard variant aims to make Tesla vehicles more accessible to a broader audience, with a focus on an ultra-low cost of ownership, according to a Tesla post on X. While the vehicle reduces certain premium finishes and features, it still offers a driving range exceeding 300 miles (480 km), making it competitive in the mass-market EV segment.
Deliveries are expected to begin in the first quarter of 2026, as Tesla looks to defend its European market share amid rising popularity of rivals such as Volkswagen ID.3 and Chinese automaker BYD Atto 3.
Pricing of the Model 3 Standard in Key European Markets
Tesla has set competitive prices for the new Model 3 Standard variant across Europe:
- Germany: €37,970 ($44,300)
- Norway: 330,056 NOK ($32,700)
- Sweden: 449,990 SEK ($47,820)
For comparison, the second cheapest Model 3 “Premium” variant in Germany is priced at €45,970. Tesla’s U.S. Model 3 Standard, launched in October, currently sells for $36,990.
By offering a more affordable version of the Model 3, Tesla hopes to attract buyers who might otherwise choose budget-friendly EVs priced below $30,000, particularly from European and Chinese manufacturers.
Market Context and Strategic Implications
Tesla CEO Elon Musk has long emphasized the goal of producing mass-market electric vehicles, though last year plans for a brand-new $25,000 EV were scrapped in favor of lower-cost versions of existing models. Analysts have raised concerns about potential cannibalization of higher-margin Tesla vehicles, but the company sees the Standard variants as crucial for near-term revenue growth in Europe.
In addition to EVs, Tesla is increasingly focusing on artificial intelligence, with investments in robotaxis and humanoid robots, though traditional vehicle sales remain a cornerstone of the company’s financial strategy.
Previous Launches and Market Defense
Tesla also introduced a low-cost Model Y crossover in October 2025 as part of its strategy to defend market share in Europe. Both the Model 3 and Model Y Standard variants target the growing demand for affordable, high-range electric vehicles while fending off competition from Volkswagen, BYD, and other emerging EV players.
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