Tesla’s introducing stripped-down versions of the Model 3 and Model Y in Europe to compete with cheaper electric cars flooding the market. The Model 3 Standard starts at €36,990 in Germany, while the Model Y Standard costs €39,990 across main European markets. These prices represent roughly a €5,000 reduction compared to previous entry-level models. Tesla expects these budget versions to undercut competitors by 10-15% in Europe’s growing EV market.
Both Standard models deliver impressive performance specs despite their lower prices. The Model 3 Standard accelerates from 0-100 km/h in 6.2 seconds and offers 534 km of WLTP-rated range. The Model Y Standard matches that same 534 km range while reaching 0-60 mph in approximately 5.8 seconds. These vehicles achieve 5% higher rated range than expected through component optimizations and improved energy efficiency of 15.7 kWh/100 km. The Model Y’s heat pump technology enables this efficiency gain by delivering up to 300% more efficient cabin heating compared to traditional electric resistance systems. Both models feature dual motor all-wheel drive configurations that enhance traction and stability in various driving conditions. Battery & Drive Unit Warranty coverage extends to 8 years or 120,000 miles, whichever comes first, providing buyers with long-term protection.
To hit these lower price points, Tesla’s removed several features from higher-end models. Standard trims feature partially textile seats instead of vegan leather upholstery. The 8-inch rear touchscreen display is gone, and heated rear seats are eliminated. The audio system downgraded to seven speakers, removing the subwoofer and amplifiers. Wheels switched from alloy to steel with plastic aero covers.
Tesla’s also simplified technology features. Manual steering wheel adjustment replaces the electric system. Lane departure warning capabilities were removed. Only basic cruise control comes standard, without steering assist functionality. The ambient lighting system is more basic than premium versions. The vehicles now include Chill Mode as a standard feature to help drivers maintain better traction control during acceleration in various road conditions.
Production’s already underway in Europe. The Model Y Standard will be manufactured at Tesla’s Grünheide factory in Germany beginning in just a few weeks. The Model 3 Standard will likely be imported from Giga Shanghai in China. This approach mirrors Tesla’s North American strategy when introducing Standard models.
The timing targets a significant market challenge. European EV sales declined 15% during Q3 2025, partly due to competition from Chinese manufacturers offering cheaper options. Tesla’s hoping these new Standard models will recapture price-sensitive buyers who’d otherwise turn to competitors. The vehicles maintain respectable range and performance while cutting costs substantially.