Tesla has introduced a lower-priced version of its Model 3 in Europe, aiming to revive sales that have been hit by a backlash against CEO Elon Musk's political activities and weakening demand for electric vehicles. The new Model 3 Standard is priced at €37,970 (£33,166) in Germany, 330,056 Norwegian kroner (£24,473) in Norway, and 449,990 Swedish kronor (£35,859) in Sweden.
Musk has argued that the cheaper option, already launched in the US in October, will reignite demand by appealing to a broader range of buyers. The move follows a similar launch of a lower-priced Model Y SUV, Tesla's bestselling model, in Europe and the US. The cheaper versions drop some premium finishes and features but still offer driving ranges above 300 miles (480km).
Tesla sales have slumped across Europe as competition from Chinese rival BYD intensifies; BYD outsold Tesla in the region for the first time in spring. Sales have also been hurt by a buyer backlash against Musk's support for Donald Trump's election campaign and his role in the Trump administration's 'department of government efficiency' (Doge), which involved sweeping job cuts. Musk quit in May after falling out with Trump over a tax and spending bill.
Musk has further alienated customers with controversial political interventions, including appearing to give a Nazi salute at a Trump rally, supporting Germany's far-right AfD party, and accusing UK politicians of covering up grooming gang scandals. In the UK, new taxes on electric cars in the recent budget could undermine demand. UK electric car sales grew at their slowest rate in two years in November, at just 3.6%, according to the Society of Motor Manufacturers and Traders (SMMT).
SMMT chief executive Mike Hawes called the figures a 'wake-up call' and urged the government to encourage EV adoption rather than penalise drivers. The chancellor's new pay-per-mile road tax on EVs will charge 3p per mile from April 2028, costing motorists about £250 a year on average.
