Tesla Launches Low-Cost Model 3 in Europe. Investors Care About This More.

Coming into Friday trading, Tesla stock was up 13% this year and up 23% over the past 12 months. (BENJAMIN CREMEL/AFP via Getty Images)

Key Points

• Tesla launched a lower-priced Model 3 in Europe for about 37,000 euros ($43,000), approximately $9,000 less than the Premium version.
• Tesla’s global sales decreased by about 6% year-to-date in the first three quarters of 2025, indicating a potential second annual sales decline.
• Investors are prioritizing Tesla’s AI ventures, such as robo-taxis and humanoid robots, over traditional car sales.

Tesla launched the lower-priced version of its Model 3 in Europe. Its stock isn’t reacting much because investors aren’t that concerned with car sales anymore.

Shares of the electric-vehicle maker rose 0.1% to $455 on Friday. It was the 14th time shares have closed above $450. The S&P 500 and Dow Jones Industrial Average both added about 0.2%.

The “Standard” version of Tesla’s Model 3 sedan is now available to order in Europe, Reuters reported on Friday. Tesla’s German website lists the vehicle for about €37,000 ($43,000)—about $9,000 less than the lowest “Premium” version of the car.

Tesla launched the lower-cost Model 3 in the U.S. in October. It starts at about $35,000. The car isn’t available in China yet.

Lower-cost models are designed to help Tesla arrest recent sales declines. Initially, Wall Street was hoping for a totally different model, which could expand Tesla’s addressable market. Tesla opted to offer versions of existing models with fewer features.

How successful the strategy will be is hard to say. There isn’t much sales data for the U.S. yet, and the car was launched after the $7,500 federal EV purchase tax credit expired.

Tesla could use something to boost sales. Through November, Tesla sold 17,358 vehicles in Germany, down 48% year over year. From January through October, the latest data available, Tesla had sold 117,000 cars in European Union countries, down 39% compared with the same period of 2024. Globally, Tesla sales were down about 6% in the first three quarters of 2025, putting Tesla on track for its second annual sales decline.

Tesla stock has held up despite falling car sales. Coming into Friday trading, shares were up 13% this year and up 23% over the past 12 months. Shares have had a strong start to December, up almost 6% for the month.

Investors are far more focused on Tesla’s AI opportunities these days, including robo-taxis and humanoid robots.

The reason isn’t hard to understand. Take Deutsche Bank analyst Edison Yu. He rates Tesla stock Buy and has a $470 price target for the stock; $148 of that target comes from robo-taxis, and $111 comes from robots. That’s more than the $175 he attributes to the base car business.

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