Finance
Tesla launches low-cost Model 3 variant in Europe
Published by Global Banking and Finance Review
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 8, 2025
2 min readLast updated: January 20, 2026
Tesla launches a low-cost Model 3 in Europe to counter competition and boost sales. The car offers a range above 300 miles and varies in price across European countries.
By Marie Mannes
STOCKHOLM, Dec 5 (Reuters) - Tesla launched the new, lower-priced version of its Model 3 car in Europe on Friday, two months after its U.S. debut, aiming to boost sales as competition intensifies and demand slows.
Tesla is grappling with softening demand across Europe, where new registrations have fallen sharply this year despite a refreshed Model Y line-up, with many buyers opting for competitor vehicles such as the Volkswagen ID.3 and Chinese manufacturer BYD's Atto 3.
The Model 3 - which Tesla describes in a post on X as having an "ultra-low cost of ownership" - drops some premium finishes and features but offers a driving range above 300 miles (480 km). Deliveries are expected to start in the first quarter of 2026.
CEO Elon Musk has long promised mass-market vehicles, though last year he scrapped plans for an all-new $25,000 EV, opting instead to build lower-priced versions of existing models, a shift that has sparked concerns among analysts about cannibalising sales of higher-margin cars.
A low-cost Model Y crossover was launched in October as Tesla seeks to defend its market share against European and Chinese rivals offering increasingly lower-priced electric cars in Europe, with many selling EVs below $30,000.
The new Model 3 Standard is listed at 37,970 euros ($44,299.60) in Germany, 330,056 Norwegian crowns ($32,698) in Norway and 449,990 Swedish crowns ($47,820) in Sweden, according to Tesla's website. On its German website, the second cheapest Model 3, which is called "premium", comes in at 45,970 euros.
Tesla introduced the Standard variant of the Model 3 in the U.S. in October, where it currently sells for $36,990.
Musk has been shifting the company towards artificial intelligence, focusing on robotaxis and humanoid robots, but the new cars are key to hopes of near-term revenue growth.
($1 = 0.8571 euros)
($1 = 10.0942 Norwegian crowns)
($1 = 9.4100 Swedish crowns)
(Reporting by Marie Mannes; Editing by Terje Solsvik and Kate Mayberry)
A low-cost electric vehicle is an electric car that is priced lower than traditional electric models, making it more accessible to a broader range of consumers. These vehicles often have fewer premium features but maintain essential performance capabilities.
Tesla's Model 3 is significant as it represents the company's effort to enter the mass market for electric vehicles, offering a more affordable option while maintaining a competitive driving range and performance.
The new Model 3 variant offers a driving range of over 300 miles (480 kilometers), which is an essential factor for consumers considering electric vehicles.
Electric vehicle registrations refer to the official recording of electric cars as they are sold and registered for use on the road. This metric is often used to gauge the popularity and adoption of electric vehicles in a market.
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