Tesla Slashes Prices in Europe With New Stripped-Down EV Versions

By bike_ev_admin December 7, 2025 3 min read

Tesla is making one of its boldest strategic pivots in years, launching new “Standard” versions of the Model 3 and Model Y across Europe. The move signals a clear shift: Tesla is no longer just competing on technology—it’s fighting on price.

European sales figures demonstrate why this drastic step was necessary. In November, Tesla registrations declined 12.3% year-over-year, and when Norway’s temporary EV surge is excluded, sales across the rest of Europe plummeted by over 36%. With rivals from China rapidly gaining market share and European automakers cutting prices, Tesla is attempting a reset before the gap widens further.

Model 3 Standard: Tesla’s New €36,990 Mass-Market Weapon

The most aggressive change is the introduction of the Model 3 Standard, now priced at €36,990 in Germany, France, Italy, and other major markets. Sliding just under €37,000 is a psychological win, placing the Model 3 squarely into the pricing territory of mainstream petrol cars.

Despite the cost-cutting, the Model 3 Standard still delivers:

534 km WLTP range
0–100 km/h in 6.2 seconds
Full Tesla software suite & Supercharger access

To reach this lower price, Tesla removed or downgraded several features:

What’s Missing in the Model 3 Standard

“Partially textile” front seats instead of full vegan leather
No rear 8-inch passenger display
No heated rear seats
Seven-speaker audio system (no subwoofer or external amps)
Steel wheels instead of alloys

It’s a minimalist Tesla—not luxurious, but strategically priced to undercut competitors.

Model Y Standard: A €39,990 Entry Point for Europe’s Favorite Tesla

Tesla also unveiled the Model Y Standard, now starting at €39,990, placing it just below the Volkswagen ID.4 Pure.

Key specs include:

534 km WLTP range
Same aerodynamic and efficiency improvements as the refreshed lineup

However, the value proposition is weaker than the Model 3’s. For only a modest price increase, the Model Y Premium offers significantly more features—raising questions about who the Standard version is really for.

Price War: Tesla vs China vs Europe

These new prices put Tesla directly into the ring with its fastest-growing rivals:

Against BYD

The Model 3 Standard is now €1,000 cheaper than the BYD Atto 3
Tesla offers a longer range and more interior space

Against Volkswagen

VW ID.3 Pure: from €29,760 (with German bonuses), but shorter range
VW ID.4 Pure: €40,335, slightly more expensive than the Model Y
Tesla has a superior charging network and software ecosystem

The message is clear: Tesla is trying to reclaim Europe’s value segment before Chinese imports dominate it.

Why Tesla Is Making This Move Now

Tesla’s challenges include:

A lineup that hasn’t meaningfully changed in years
Heavy pressure from Chinese EV brands
Rising competition from European automakers
Growing brand toxicity linked to Elon Musk’s political controversies
Declining European sales month after month

By offering the lowest entry prices in years, Tesla hopes to boost volume and draw back buyers who may have drifted to BYD, MG, Renault, or Volkswagen.

Will Stripped-Down Teslas Be Enough?

Tesla’s hope is simple: price beats features.
By leaning into minimalism and ditching luxury extras, the company aims to ignite demand and hold onto a shrinking share of Europe’s EV market.

Whether this tactic will stabilize sales—or simply spark a race to the bottom—remains to be seen. But one thing is certain: Tesla just declared a new phase of Europe’s EV price war.