Tesla Offers Cut-Price New Vehicles In Europe, Trying to Arrest Sales Decline

A line of Tesla Model Y vehicles is pictured at Tesla’s German “Gigafactory” located near Berlin. Through September, Tesla sold about 15,000 cars in Germany, down 50% from a year ago. (Photo by Patrick Pleul / POOL / AFP) (Photo by PATRICK PLEUL/POOL/AFP via Getty Images)

Key Points

• Tesla introduced “Standard” Model Y and Model 3 vehicles in Europe, priced around €40,000, about €5,000 less than “Premium” versions.
• European sales for Tesla through August declined by 33% from a year ago.
• Globally, Tesla sold 1.22 million cars in the first three quarters of 2025, a 6% decrease from the previous year.

Tesla has introduced its new “Standard” Model Y and Model 3 vehicles in Europe, hoping lower-priced versions of its two most popular cars can arrest sales declines in the region.

European websites for the electric vehicle maker now show lower-price versions of the Model 3 and Y that Tesla unveiled in the U.S. this past week. Both start at just under €40,000 ($46,500), about €5,000 lower than the lowest-priced “Premium” versions.

The Standard Model 3 lists for just under $37,000 in the U.S. The Standard Model Y starts at just under $40,000 in the U.S.

Tesla could use the new options for European car buyers. Through August, Tesla sold about 134,000 vehicles in the European region, down about 33% from a year ago. A lack of affordable models, more EV competition, and some concern over CEO Elon Musk’s politics have hit sales. China’s BYD sold almost 96,000 vehicles, up 280% from a year ago.

Next up for Tesla might be Standard models in China. Tesla’s Chinese website doesn’t list the Standard version Model 3 and Y vehicles yet. Tesla vehicles are cheaper there already. The least expensive Model 3 starts at RMB235,500 ($33,100). The least expensive Model Y starts at RMB263,500 ($37,000).

Tesla sales haven’t declined as much in that region, but are on pace for their first annual decline ever, unless results pick up in the fourth quarter. Tesla doesn’t report sales regionally, but through August had sold about 366,000 cars in the country, according to industry data providers, down about 6% from a year ago.

Globally, Tesla sold about 1.22 million cars in the first three quarters of 2025, down about 6% from a year ago.

Coming into Monday trading, Tesla stock was up about 2% for the y ear so far and up about 90% over the past 12 months. Investors have been more focused on AI opportunities than car sales lately. Tesla started an AI-trained self-driving taxi service in Austin, Texas, in June.

Write to Al Root at allen.root@dowjones.com