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Tesla Model 3 Standard undercuts rivals as Europe EV price pressure grows

Tesla Model 3 Standard undercuts rivals as Europe EV price pressure grows

Market news |
By Alina Neacsu



Tesla has introduced the Tesla Model 3 Standard across key European markets, trimming equipment to position the base version below the €37,000 mark in many countries. The lower-cost variant keeps core range and performance broadly intact while dropping a series of comfort and convenience features to reach a more aggressive entry price.

For eeNews Europe readers, this move potentially signals a fresh round of EV price competition that could reshape sourcing, content decisions and platform planning for European OEMs and their Tier 1s, especially as Chinese brands and local incumbents continue to trade price against specification.

Tesla pares back features to hit lower price point

The Tesla Model 3 Standard is positioned under the existing rear-wheel-drive Model 3 by roughly €3,000, depending on the market. In Germany, the car is listed at €37,970, while in France it is priced at €36,990, where it does not qualify for national EV incentives because it is imported rather than built locally. In Scandinavia, the variant is shown at 330,056 crowns in Norway and 449,990 crowns in Sweden, indicating a coordinated cost-down strategy rather than a single-market promotion.

To reach those levels, Tesla has removed ambient interior lighting, the rear-seat touchscreen, heated rear seats and power steering wheel adjustment. The audio system drops from nine speakers to seven, the exterior mirrors lose automatic dimming, and the synthetic leather seats are replaced with fabric, without ventilation. Under the skin, earlier U.S. analysis of the Standard configuration pointed to reductions in battery capacity and other hardware optimisations to lower bill-of-materials cost while keeping range in the low-to-mid-500 km band, depending on test cycle.

This Tesla Model 3 Standard launch follows the introduction of cut-price Model Y variants in Europe and comes as the brand seeks to protect share against both European and Chinese competitors that are steadily pushing down EV transaction prices.

As Chinese brands expand and European OEMs roll out their own budget-oriented BEVs, the Tesla Model 3 Standard may act as a reference point in internal benchmarking exercises, particularly around which features can be traded away without undermining perceived value in the midsize segment.

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