Tesla launches cheaper Standard EVs in Europe to blunt sales drop, Musk backlash
- - Tesla launches cheaper Standard EVs in Europe to blunt sales drop, Musk backlash
Pras SubramanianDecember 5, 2025 at 5:46 PM
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Tesla (TSLA) launched the cheaper Standard versions of the Model 3 and Model Y in Europe as sales lag in the region due to competition and the political antics of CEO Elon Musk.
According to Tesla's website in the Netherlands, the Model 3 Standard is on sale for 36,990 euros ($43,130), compared to 45,990 euros ($53,620) for the Premium Long Range. As in the US, the Standard models are "de-contented," meaning they lack features such as premium materials (like cloth seats), a rear passenger infotainment screen, a glass roof, and enhanced lighting, among other things. The Standard models also have less powerful motors and decreased range.
In the US, the Model 3 Standard costs $36,990, compared to $42,490 for the Premium rear-wheel drive.
As for the Model Y, the Dutch website lists the Standard edition for 39,990 euros ($46,630) versus 50,990 euros ($59,450) for the Premium Long Range. Compared to the US, the Standard Model Y is priced at $39,990 and $44,990 for the Premium.
Both models are available for delivery in December. Tesla stock was little changed on the news, but shares are up 6% for the week as the broader tech sector recovers.
Introduction of the Standard versions of Tesla's most popular EVs comes as the company's sales tumble in the region.
According to its most recent report, the European Automobile Manufacturers' Association (ACEA) said Tesla electric vehicle registrations (a proxy for sales) in Europe fell to just 6,964 units in October, a 48.5% drop compared to a year ago. Meanwhile, total EV registrations in the region, which includes the UK and the European Free Trade Association, rose 32.9% in October, with overall registrations regardless of powertrain up 4.9%.
Tesla cars are parked at the car manufacturer in Parsdorf near Munich (Bavaria, Germany) on Oct. 28, 2025. While the market share of e-cars in Europe is recovering, sales of vehicles from co-founder and CEO Musk's company have plummeted. (Matthias Balk/picture alliance via Getty Images) (picture alliance via Getty Images)
In the first 10 months of the year, Tesla sales dropped 29.6% to 180,688 units, per the ACEA. Conversely, Tesla's overall market share in Europe dropped to 1.6% from 2.4% a year ago.
Meanwhile, Tesla's Chinese competitor BYD (BYDDY), which sells a mix of pure EVs and hybrids, reported sales jumping 207% to 17,470 units sold in Europe. Another major China rival, SAIC, saw sales climb 46% to just under 24,000 vehicles sold.
Competition isn't the only reason Tesla is suffering in the region. Musk blames higher interest rates and an uneven economic outlook, but many buyers in the region are put off by Musk's embrace of far-right politicians in the bloc and his on-again, off-again relationship with President Trump.
It remains to be seen whether the Standard Model 3 and Model Y can blunt the negative tide Tesla faces in Europe.
On the positive side, the Netherlands RDW automotive governing body said it has established a schedule allowing Tesla to demonstrate in February whether full self-driving (FSD) meets requirements, but has not yet approved it.
Getting at least one automotive regulator in Europe to approve FSD would be a huge step in the right direction for Tesla and may help staunch the sales slide in the region.
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Pras Subramanian is Lead Auto Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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