Tesla hopes to reverse a year-long sales crash in Europe with two marginally cheaper, stripped-back model variants. By Stewart Burnett
Tesla has officially rolled out stripped-back versions of the Model 3 and Model Y across European markets as it tries to combat a year-long continent-wide sales crash. Both vehicles shed premium features including panoramic glass roofs, rear touchscreens and electric steering adjustment to hit lower price points as consumers look for more affordable options for electric vehicles.
The Model 3 Standard launched at €37,970 (US$44,300) in Germany, while the UK received the Model Y Standard priced at £41,990 (US$53,100). The move follows October’s US launch of the same variant at US$36,990. Tesla removed the previous Model Y Rear-Wheel Drive from its range, repositioning the Long Range version at £48,990 as the next tier up.
Tesla currently faces mounting pressure from Chinese rival BYD, which outsold Tesla across Europe for the first time in spring 2025 and has generally held that position since. However, sales are likely more affected by consumer backlash against Chief Executive Elon Musk’s political activities, including his controversial stint running the Department of Government Efficiency in the US. Locally, his endorsements of Germany’s far-right AfD party, and UK white supremacist figurehead Tommy Robinson have triggered revulsion among Tesla’s traditionally liberal consumer base.
The Model Y Standard delivers 314 miles of range and achieves 4.5 miles per kWh efficiency. UK specifications include 19-inch wheels to support residual values, while cloth seats replace faux leather. Tesla engineered reduced top speed and gentler acceleration into UK versions to secure Group 34 insurance classification—the lowest rating the manufacturer has thus far achieved.
UK buyers can secure the Model Y through 36-month leases at £299 monthly with £3,588 deposits. The £41,990 sticker price matches its €41,990 eurozone pricing; however, with currency conversion factored in continental buyers pay the equivalent of under £37,000. First UK deliveries begin in February 2026, with the Model 3 Standard expected to follow shortly thereafter.
Like many electric vehicle (EV) makers, Tesla will face headwinds from new UK budget measures imposing 3p-per-mile road tax on EVs from April 2028. Domestic EV sales growth sat at just 3.6% in November, the weakest growth in two years. Under the new rules it cannot be guaranteed that growth will resume at the usual pace.