Tesla's new Model 3 and Model Y are under $46,500
Tesla just dropped more affordable "Standard" versions of its Model Y and Model 3 in Europe, each starting under €40,000 (about $46,500).
These new models are roughly €5,000 less than the previous "Premium" ones.
It's a move that follows similar price cuts in the US—where you can now get a Standard Model 3 for under $37,000 and a Model Y for less than $40,000.
Why the price cuts?
Tesla's making these changes after seeing European sales fall by 33% through August 2024—selling about 134,000 cars—as buyers look for cheaper options and rivals like BYD surge ahead.
BYD's sales jumped an impressive 280% from a year ago, reaching nearly 96,000 units through August [2024].
Tesla is hoping these wallet-friendlier models will win back buyers in Europe and may try this approach in China as well.
Even with global sales down by about 6% in the first three quarters of [2025], investors are still upbeat thanks to Tesla's push into AI tech.