Tesla Reduces Model 3 Pricing in Europe Amid Sales Decline and Musk Criticism

Tesla has introduced a more affordable variant of its Model 3 sedan in Europe amid efforts to boost sales, following declining demand for electric vehicles and public reactions to Elon Musk’s political engagements.

Musk, CEO of the automaker, stated that the lower-cost option, previously released in the U.S. last October, aims to broaden buyer appeal.

The Model 3 Standard is priced at €37,970 in Germany, 330,056 Norwegian kroner, and 449,990 Swedish kronor. This follows the European and U.S. debut of a competitively priced Model Y SUV, Tesla’s top-selling vehicle.

European sales have dropped as Tesla faces heightened competition from Chinese manufacturer BYD, which surpassed the U.S. firm in regional sales for the first time this spring.

Demand in the EU has also been impacted by customer disapproval of Musk’s alignment with Donald Trump’s political agenda. As head of the Department of Government Efficiency (Doge), Musk oversaw extensive staff reductions but resigned in May after disagreements over fiscal policy.

Further controversies, including Musk’s apparent use of a Nazi gesture at a Trump event, endorsement of Germany’s far-right AfD party, and allegations against political figures, have contributed to consumer alienation.

Recent U.K. budget measures imposing new taxes on electric vehicles risk dampening demand, analysts warn. November saw the slowest growth in U.K. EV sales in two years, rising just 3.6%, according to industry data.

Mike Hawes of the Society of Motor Manufacturers and Traders remarked, “This signals that rising EV demand cannot be assumed. Every incentive to adopt these vehicles should be prioritized, not penalized.”

Starting April 2028, U.K. drivers of electric cars will face a 3p-per-mile road tax, averaging £250 annually.