Tesla launches a budget-friendly variant of the Model 3 in Europe

Two months after its US debut, Tesla unveiled the revised, more reasonably priced Model 3 in Europe on Friday. This in an effort to increase sales as competition heats up and demand declines.

Despite the updated Model Y lineup, Tesla’s sales in Europe have drastically decreased this year. With many consumers choosing rival cars like the Volkswagen ID.3 and the BYD Atto 3.

The Model 3 has a range of more than 300 miles (480 km), although it lacks some premium amenities and trim levels. Tesla claims the Model 3 has a «ultra-low cost of ownership» in a post on X. The first quarter of 2026 is when deliveries are anticipated to start.

Tesla CEO Elon Musk has long promised mass-market automobiles, but this year he abandoned plans to build a new, $25,000 electric car in favor of producing more reasonably priced versions of current models.

Analysts were concerned that this change would cannibalize sales of cars with better profit margins.

In October, Tesla launched a low-cost crossover, the Model Y, as it seeks to defend its market share against European and Chinese rivals. Who are offering increasingly affordable electric cars in Europe, many of which sell electric vehicles for under $30,000.

The new Model 3 Standard is priced at €37,970 ($44,299.60) in Germany, 330,056 Norwegian kroner ($32,698) in Norway, and 449,990 Swedish kronor ($47,820) in Sweden, according to Tesla’s website. On its German website, the second most affordable Model 3, called the «premium,» is priced at €45,970.

Tesla introduced the standard version of the Model 3 in the US in October, where it currently sells for $36,990.