Tesla launches low-cost Model 3 variant in Europe at Ksh.5.7 million

Tesla is grappling with softening demand across Europe, where new registrations have fallen sharply this year despite a refreshed Model Y line-up, with many buyers opting for competitor vehicles such as the Volkswagen ID.3 and Chinese manufacturer BYD's Atto 3.

The Model 3 - which Tesla describes in a post on X as having an "ultra-low cost of ownership" - drops some premium finishes and features but offers a driving range above 300 miles (480 km). Deliveries are expected to start in the first quarter of 2026.

CEO Elon Musk has long promised mass-market vehicles, though last year he scrapped plans for an all-new $25,000 EV, opting instead to build lower-priced versions of existing models, a shift that has sparked concerns among analysts about cannibalising sales of higher-margin cars.

A low-cost Model Y crossover was launched in October as Tesla seeks to defend its market share against European and Chinese rivals offering increasingly lower-priced electric cars in Europe, with many selling EVs below $30,000.

The new Model 3 Standard is listed at 37,970 euros ($44,299.60) in Germany, 330,056 Norwegian crowns ($32,698) in Norway and 449,990 Swedish crowns ($47,820) in Sweden, according to Tesla's website. On its German website, the second cheapest Model 3, which is called "premium", comes in at 45,970 euros.

Tesla introduced the Standard variant of the Model 3 in the U.S. in October, where it currently sells for $36,990.

Musk has been shifting the company towards artificial intelligence, focusing on robotaxis and humanoid robots, but the new cars are key to hopes of near-term revenue growth.