Tesla offers cut-price new vehicles in Europe, trying to arrest sales decline

The electric vehicle maker’s European websites now show lower-priced versions of the Model 3 and Y, which Tesla introduced in the US last week. Both start at just under €40,000 ($46,500); this is around €5,000 less than the lowest priced “Premium” versions.

The standard Model 3 is listed for just under $37,000 in the US The standard Model Y starts at just under $40,000 in the US

Tesla may have new options available to European car buyers. Through August, Tesla sold about 134,000 vehicles in the European region, down nearly 33% from a year ago. A lack of affordable models, more EV competition and some concerns about CEO Elon Musk’s policies have affected sales. China’s BYD sold nearly 96,000 vehicles, up 280% from a year ago.

Tesla’s next target may be Standard models in China. Tesla’s Chinese website does not yet list Standard edition Model 3 and Y vehicles. Tesla vehicles are already cheaper there. The cheapest Model 3 starts at RMB 235,500 ($33,100). The cheapest Model Y starts at RMB 263,500 ($37,000).

Tesla sales haven’t fallen much in this region, but are heading for their first annual decline ever unless results pick up in the fourth quarter. Tesla doesn’t report sales regionally, but it had sold about 366,000 cars in the country through August, according to industry data providers; This figure was down nearly 6% from a year ago.

Tesla sold approximately 1.22 million cars worldwide in the first three quarters of 2025; This figure decreased by approximately 6% compared to the previous year.

Entering Monday trading, Tesla shares were up about 2% for the year so far and nearly 90% in the past 12 months. Investors have recently focused more on artificial intelligence opportunities than car sales. Tesla launched an AI-trained driverless taxi service in Austin, Texas, in June.

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