Tesla launches a budget Model 3 in Europe with over 300 miles of range to combat falling sales

Tesla has brought a more affordable Model 3 sedan to European markets as the company tries to reverse falling sales numbers tied to public criticism of Elon Musk’s political involvement and softening interest in electric cars.

European buyers can now purchase the Model 3 Standard for €37,970 (£33,166) in Germany. Norwegian customers will pay 330,056 kroner (£24,473), while Swedish shoppers face a price tag of 449,990 kronor (£35,859). This introduction comes after Tesla already released a less expensive Model Y sport utility vehicle, currently the company’s top-selling car, in both European and American markets.

The budget models sacrifice certain high-end materials and extras found in pricier versions. However, they maintain the ability to travel more than 300 miles (480km) on a single charge.

Tesla’s European sales numbers have dropped sharply as Chinese competitor BYD poses a growing threat. BYD actually sold more vehicles than the American electric car manufacturer throughout the region for the first time during the spring months.

Sales within European Union countries have taken another hit from customers turning away due to Musk’s backing of Trump’s presidential run and his subsequent work within the president’s team.

As head of the “department of government efficiency”—known as Doge—the technology mogul spearheaded massive workforce reductions before stepping down in May following disagreements with Trump about the “big, beautiful” tax and spending legislation.

Musk has driven customers away through his divisive political actions

These include what appeared to be a Nazi salute during Trump’s celebration event, his endorsement of Germany’s far-right political group, and his claims that Keir Starmer and other top British officials helped hide the grooming gang controversy.

Fresh taxes on electric vehicles introduced in last month’s budget might hurt British demand, according to industry observers. British electric car sales climbed at the weakest pace seen in two years during November, posting only 3.6% growth based on data from the Society of Motor Manufacturers and Traders (SMMT).

“[This] should be seen as a wake-up call that a sustained increase in demand for EVs cannot be taken for granted,” said Mike Hawes, the chief executive of the SMMT. “We should be taking every opportunity to encourage drivers to make the switch, not punishing them for doing so.”

The combination of political backlash, rising competition, and tax policy changes creates significant headwinds for Tesla’s European operations. The company’s strategy of offering lower-priced vehicles aims to attract price-conscious buyers who might otherwise choose competing brands or stick with conventional gasoline-powered cars.

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