This article first appeared on GuruFocus.
Tesla (NASDAQ:TSLA) just brought its lower-priced Model 3 to Europe, two months after its U.S. debut, in a strategic push to reignite demand as the regional EV market softens. The Standard variant offers a driving range above 300 miles and is expected to reach customers starting in the first quarter of 2026. Tesla describes the model as having an ultra-low cost of ownership, a positioning that could be designed to target price-sensitive buyers at a time when overall registrations in Europe have weakened despite the refreshed Model Y lineup.
Competition in Europe has been heating up, with more buyers moving toward Volkswagen’s ID.3 and BYD’s Atto 3, pressuring Tesla to defend its market share with sharper pricing. The new Model 3 Standard now lists at 37,970 euros in Germany, 330,056 Norwegian crowns in Norway and 449,990 Swedish crowns in Sweden, significantly lower than the premium Model 3 priced at 45,970 euros on Tesla’s German website. This comes shortly after Tesla launched a low-cost Model Y in October, an effort aligned with increasing price competition as several Chinese and European rivals are already selling EVs below $30,000 in Europe.
Elon Musk had previously shelved plans for an all-new $25,000 vehicle, instead opting to introduce lower-cost versions of current models. Some analysts have suggested the strategy could risk cannibalising higher-margin products, but the move may still support near-term revenue growth as Tesla navigates a slower demand backdrop. Musk has been devoting more attention to artificial intelligence initiatives such as robotaxis and humanoid robots, yet these lower-priced cars continue to play a central role in Tesla’s sales narrative, offering a possible bridge between AI ambitions and ongoing EV market adoption.