Tesla Inc (NASDAQ:TSLA) is betting on a more affordable Model 3 to help it claw back market share in Europe, where electric vehicle sales are under pressure and the competition keeps getting cheaper.
On Friday, the company began offering a stripped-back version of its Model 3 sedan in several European countries, just weeks after launching the same model in the United States.
The new variant, dubbed the Standard Range, dials down the luxury touches but still promises over 300 miles of range. It’s listed at €37,970 in Germany, with similar pricing across Norway and Sweden. Deliveries are expected in early 2026.
Europe has become a tougher market for Tesla this year. Registrations are down, even with a refreshed Model Y in showrooms. Buyers are increasingly turning to rivals like Volkswagen’s ID.3 or budget-friendly options from China such as BYD’s Atto 3.
Tesla isn’t rolling out all-new vehicles to hit lower price points. Instead, it’s reworking existing ones. The company dropped its long-rumoured $25,000 car last year and has focused instead on cheaper variants of the Model Y and Model 3.
This is all happening as Elon Musk talks more about artificial intelligence and robotics than cars. But with Tesla’s revenue still largely driven by vehicle sales, this lower-cost Model 3 may be one of its most important plays yet.