Tesla is making a calculated and aggressive move into the European mass market by offering new “Standard” versions of its popular Model 3 and Model Y electric cars. The automaker is lowering prices and removing some trim options to challenge its competitors and regain market share in a key region where sales have been plummeting.
A Sharp Sales Drop Is Alarming
Data from Europe clearly demonstrates why this change is necessary. Tesla’s registration numbers in November were down 12.3% year-over-year. Even more alarming, excluding Norway, which experienced a temporary EV surge due to the end of government incentives, sales in the rest of Europe are down over 36%. To counter this painful decline, Tesla has drastically lowered the entry point, hoping the price drop will outweigh the loss of certain features.
The focus of this strategy is the new Model 3 Standard trim level. In major markets like Germany, France, and Italy, the new price tag is set at an impressive €36,990. This price point, just under €37,000, is a major psychological victory. This puts the Model 3 squarely in the price range of standard gasoline vehicles and below the price of many electric cars on the market.
Despite the lower cost, the Model 3 Standard still offers solid performance:
- Range: It maintains a respectable WLTP range rating of 534 km.
- Acceleration: Drivers can expect brisk acceleration; the car accelerates from 0 to 100 km/h in 6.2 seconds.
To achieve this aggressive pricing, the company had to make some tough decisions regarding the features. The full vegan leather upholstery found in the higher-priced Premium and Long Range trims is replaced by “partially textile seats.” Rear passengers will lose the comfort of the 8-inch screen and heated rear seats added in the latest update.
The audio system has also been downgraded to a standard seven-speaker system, removing the subwoofer and amplifiers. The most obvious exterior difference is the alloy wheels replaced by steel ones. The larger Model Y is also being treated as Standard and is now listed in major European markets at €39,990. The Model Y Standard offers the same 534 km WLTP range as the Model 3 Standard. However, this SUV version is considered a less attractive deal than the sedan because it is priced closer to the better-equipped ‘Premium’ version despite the loss of features.
