!2023 Munich Auto Show IAA Mobility
Tesla's Model 3 is displayed during an event a day ahead of the official opening of the 2023 Munich Auto Show IAA Mobility, in Munich, Germany, September 4, 2023. REUTERS/Angelika Warmuth * Summary
* Companies
* Tesla faces softening demand in Europe despite Model Y refreshes
* New Model 3 variant priced at 37,970 euros in Germany
* Defending European market share against cheaper Chinese rivals
* Deliveries expected in first quarter
STOCKHOLM, Dec 5 (Reuters) - Tesla (TSLA.O), opens new tab launched the new, lower-priced version of its Model 3 car in Europe on Friday, two months after its U.S. debut, aiming to boost sales as competition intensifies and demand slows.
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 (VOWG.DE), opens new tab ID.3 and Chinese manufacturer BYD's (002594.SZ), opens new tab 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.
($1 = 0.8571 euros)
($1 = 10.0942 Norwegian crowns)
($1 = 9.4100 Swedish crowns)
Reporting by Marie Mannes; Editing by Terje Solsvik and Kate Mayberry
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Thomson Reuters
Stockholm-based company news correspondent who mainly covers anything to do with retail and industrial companies in Sweden as well as other sectors with Swedish companies. She previously covered the general Nordic stock market from Gdansk, reporting on a range of subjects, from companies exiting Russia to M&As and supply chain concerns. Marie has degrees in journalism and international relations and is keen on finding stories that drive the market and that have unreported elements to it.
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