Tesla has officially launched new “Standard” trims for both the Model 3 and Model Y in Europe after launching them in North America. The automaker is aggressively positioning these stripped-down models to undercut competitors and arrest a painful sales slump in the region, with the Model 3 now starting at an impressive €36,990 in Germany.
As we reported recently, Tesla is facing a tough quarter in Europe. Registration data from November showed sales down 12.3% year-over-year, but the reality is even starker: if you exclude Norway, which is soaring due to incentives going away at the end of the year, Tesla’s sales in the rest of Europe have plummeted by over 36%.
To counter this, Tesla updated its online configurator today with these new entry-level options that significantly lower the barrier to entry, albeit with some notable compromises in features.
The Model 3 Standard: breaking the €37k barrier
The new Model 3 Standard is priced at €36,990 in Germany, France, and Italy. This is a massive psychological breach of the €37,000 mark, putting it well within swinging distance of mass-market ICE vehicles and undercutting key electric rivals.
In the Nordic markets, the pricing is equally aggressive:
- Norway: NOK 330,056
- Sweden: SEK 449,990
Despite the lower price, the specs remain impressive. The Model 3 Standard is rated at 534 km (332 miles) of WLTP range. It achieves 0 to 100 km/h (62 mph) in 6.2 seconds.
Priced significantly lower than the next cheapest Model 3, like in North America, the new Model 3 Standard is a much better offer than the Model Y Standard,
The Model Y Standard: a tougher sell
The Model Y also gets the “Standard” treatment. It is now listed at €39,990 in the main European markets.
Tesla lists the Model Y Standard with the same 534 km WLTP range as the Model 3 Standard.
Like in North America, the proposition here is not as attractive as with the Model 3 Standard. It is closer in price to the ‘Premium’ version and, on top of losing almost 100 km of range, the Standard version comes with many fewer features.
De-contenting: What do you lose?
To hit these price points, Tesla had to cut costs. We are seeing a new level of “de-contenting” that is new for the brand. Tesla has always been known to cut costs aggressively and remove features it deemed not useful, but in this case, it cut things close to the bone.
Here is what is gone compared to the Premium/Long Range trims:
- Seats: The full vegan leather is replaced by “partially textile seats”.
- Rear Screen: The 8-inch rear display introduced with the Highland refresh has been removed.
- Comfort: Heated rear seats are no longer included.
- Audio: The system is downgraded to 7 speakers, removing the subwoofer and amplifiers.
- Wheels: The alloy wheels are gone, replaced by steel wheels with plastic aero covers.
That’s on top of the more obvious exterior changes, such as removing the light bars, updating the front end, and losing the panoramic roof.
The Competition
This move puts Tesla in a fiercely competitive position against the influx of Chinese EVs and legacy European automakers.
- Volkswagen: The VW ID.3 Pure has recently seen price cuts bringing it to around €29,760 in Germany with bonuses, but the Model 3 offers significantly more range and space. The ID.4 Pure, a direct Model Y competitor, sits around €40,335 , making the Model Y Standard slightly cheaper and arguably better specced in terms of software and charging network.
- BYD: The Chinese auto giant is Tesla’s main headache right now. The BYD Atto 3 is priced at €37,990 in Germany. The Model 3 Standard now undercuts it by €1,000, while the Model Y is only €2,000 more expensive for a much larger vehicle.
- Volvo: The successful EX30 starts around €36,000–€39,000 depending on the market. Tesla could threaten the higher end of the demand for this one.
As you can see, there’s some room for Tesla to work.
Electrek’s Take
There is no denying that Tesla is hurting in Europe. We always said that this was due to a combination of a stale lineup facing increased competition and what we’ve called “brand toxicity” stemming from Elon Musk’s political activism.
I’m actually a fan of the “Standard”/ de-contenting idea in the sense that it offers more options. Not everyone needs a rear screen or heated seats in the back.
However, I do worry about the value proposition, especially with the Model Y. The Model 3 makes a lot more sense to me.
I think this should help Tesla in Europe. It could stop the bleeding and help Tesla form a bottom in Europe.
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