Tesla launches stripped-down versions of its EVs in Europe

Tesla is making a calculated and aggressive move into the European mass market, rolling out new "Standard" versions of its popular Model 3 and Model Y electric cars. The automaker is cutting prices and removing options to aggressively challenge rivals and regain footing in a key region where sales have fallen hard.

Data from Europe shows why this change became necessary. Tesla registration numbers in November dropped by 12.3% compared to the year before. More alarming still, if you take away Norway - the only country seeing a temporary EV spike due to expiring government incentives - sales across the rest of Europe dropped by over 36%. To counter this painful slide, Tesla drastically lowered the entry point, hoping the price drop would outweigh the loss of certain features.

The new Model 3 Standard trim is the centerpiece of this strategy. In major markets like Germany, France, and Italy, the new price tag is an impressive €36,990. This price point is a huge psychological victory, slipping just under the €37,000 mark. It puts the Model 3 directly in the price range of standard gasoline vehicles and undercuts many other electric cars already on the market.

Despite the lower cost, the Model 3 Standard still offers solid performance. The vehicle maintains a respectable WLTP range rating of 332 miles. Drivers can expect quick acceleration, hitting 0 to 62 mph in 6.2 seconds. To achieve this aggressive pricing, the company made tough choices about features.

Compared to the higher-priced Premium and Long Range trims, the interior features "partially textile seats," replacing the full vegan leather upholstery. Rear passengers will also notice the absence of the 8-inch display screen that was added in the recent update, and they will lose the comfort of heated rear seats. The sound system also takes a hit, downgraded to seven speakers with the removal of the subwoofer and amplifiers. The most obvious external difference is the lack of alloy wheels, replaced with steel ones.

The larger Model Y also gets the Standard treatment, now listed at €39,990 in the main European markets. The Model Y Standard offers the same 332 miles of WLTP range as the Model 3 Standard. This version of the SUV is a less compelling deal than the smaller sedan, as it sits closer in price to its better-equipped 'Premium' twin while shedding a lot of features. Regardless, both vehicles are now in a fierce new competitive ring, squaring off against rivals from China and other European manufacturers.

The Model 3 Standard is now €1,000 cheaper than the BYD Atto 3, an EV from the Chinese giant that is giving Tesla its biggest headache. The Model 3 offers more space and better driving range than the recently cut-price Volkswagen ID.3 Pure, even though the VW starts lower at around €29,760 with bonuses in Germany. The Model Y Standard at €39,990 even slightly undercuts the VW ID.4 Pure, which costs around €40,335, and arguably comes with better software and a superior charging network.

These aggressive price cuts are Tesla's attempt to inject new life into its struggling European operations. The sales difficulties stem from a combination of a stagnant lineup, rising competition, and what observers have called "brand toxicity" related to CEO Elon Musk's political activities. Tesla's new, feature-light, and price-focused electric cars are a desperate move to staunch the bleeding and get back into the European growth game - but are they enough to move the needle?

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