Bold reform: Tesla trims Model 3 price in Europe as demand wavers and Musk controversy fans the flames.
Tesla has rolled out a cheaper version of its Model 3 in Europe, hoping to revive faltering sales amid a backlash surrounding Elon Musk’s ties to Donald Trump and a cooling appetite for electric vehicles.
Musk, Tesla’s chief executive, insists the lower-cost option, first introduced in the United States in October, will spark renewed demand by appealing to a broader group of buyers.
The new Model 3 Standard is priced at €37,970 in Germany, 330,056 Norwegian kroner in Norway, and 449,990 Swedish kronor in Sweden. This pricing move follows the earlier introduction of a lower-priced Model Y in Europe and the United States, Tesla’s best‑selling model.
Tesla’s European sales have slowed as competition intensifies, notably from China’s BYD, which outsold Tesla in the region for the first time this spring.
EU buyers have also been influenced by a backlash against Musk’s political stances, including his support for Trump’s campaign and his involvement in Washington’s administration. Musk’s tenure in the so‑called department of government efficiency, or Doge, was marked by broad job cuts before his departure in May amid a rift with Trump over tax and spending policies.
Beyond these tensions, Musk’s political interventions have sparked further debate, including perceived gestures at rally events and support for far-right movements in Europe, as well as controversial statements about political opponents in the UK.
New fiscal measures in the latest budget—adding taxes on electric cars—have raised concerns about UK demand. November data from the Society of Motor Manufacturers and Traders (SMMT) show UK EV sales grew only 3.6%, the slowest pace in two years.
Industry observers warn that this waiting trend could continue unless demand strengthens. “This should be viewed as a wake‑up call: a sustained rise in EV demand cannot be taken for granted,” said Mike Hawes, chief executive of the SMMT. “Encouraging drivers to switch to EVs, rather than penalizing them for doing so, is essential.”
Looking ahead, the chancellor’s planned per‑mile road tax on EVs, set to begin in April 2028, could add about 3p per mile to driving costs, translating to roughly £250 per year for the average motorist.
