Tesla (TSLA.O) recently launched a new, lower-priced version of its Model 3 in Europe, two months after its US launch. This move aims to boost sales amid increasingly competitive markets and slowing demand.
Tesla is struggling with weak demand in the European market. Despite updates to the Model Y lineup, new car registrations have fallen sharply this year, with many consumers opting for competitors such as the Volkswagen (VOWG.DE) ID.3 and BYD Atto 3.
In a post on its X platform, Tesla described the Model 3 as having "extremely low ownership costs." While sacrificing some high-end features and specifications, the new car boasts a range of over 300 miles (480 kilometers). Deliveries are expected to begin in the first quarter of 2026.
CEO Elon Musk has long promised to launch mass-market models, but last year he abandoned plans to introduce a completely new $25,000 electric car, opting instead to produce lower-priced versions of existing models. This shift has raised concerns among analysts who fear it will cannibalize sales of more profitable models.
Tesla launched a low-cost Model Y crossover last October, aiming to defend its market share against increasingly competitive, low-priced electric vehicles from European and Chinese rivals. These competitors are offering increasingly lower prices for their electric vehicles in Europe, with many priced below $30,000.
According to Tesla's website, the new Model 3 Standard is priced at €37,970 (approximately $44,299.60) in Germany, 330,056 NOK (approximately $32,698) in Norway, and 449,990 SEK (approximately $47,820) in Sweden. On its German website, the second cheapest Model 3, named "Premium," is priced at €45,970.
Tesla launched the Model 3 Standard in the US last October, currently priced at $36,990.
While Musk has been pushing the company towards artificial intelligence, focusing on driverless taxis and humanoid robots, the new Model 3 is crucial to the company's near-term revenue growth expectations.
(1 US dollar = 0.8571 euros)
(1 US dollar = 10.0942 Norwegian kroner)
(1 US dollar = 9.4100 Swedish kroner)
