Tesla’s new budget models landed in Europe this week—but the company is heading into a race tighter than it expected. On Tuesday, Tesla unveiled the $39,990 Model Y Standard and $36,990 Model 3, aiming to make EV ownership more accessible. But with more than a dozen European and Chinese brands offering vehicles under €30,000, the challenge is steep.
While only one EV—the Nissan Leaf—dips below $30,000 in the United States, Europe’s EV scene is booming with budget contenders. From Dacia Spring at €16,800 to the BYD Dolphin Surf at €23,000 and Citroën’s e-C3 SUV at €23,300, competition has never been fiercer. Volkswagen is also gearing up to launch its ID.Polo hatchback EV for under €25,000 next year.
Fierce Competition and Its Toll
According to Sam Fiorani, vice president at research firm AutoForecast Solutions, “The competition in this market is fierce.” Tesla’s cheaper offerings now sit above most rivals’ price tags, potentially limiting their appeal. The result? Tesla’s European market share has nearly halved to 1.5% since 2023, when the Model Y was the region’s best-seller. Analysts point to an ageing lineup and a consumer backlash over Musk’s support for far-right politicians as factors in the slump.
Global Pressures
Across the Atlantic, the US EV market looks set to contract as a longstanding $7,500 tax credit expired on September 30. Even as Tesla’s more affordable cars debut, Elon Musk warned of a “few rough quarters” if overall demand stalls. Meanwhile, in the Chinese mainland—home to the world’s largest EV market—Tesla’s new releases remain pricier than domestic rivals like BYD Company’s Yuan Plus and SAIC-GM-Wuling’s mini EVs, which dominate the market.
Outlook
With rivals in Europe undercutting Tesla on price and new compact EVs launching soon, Tesla faces a pivotal moment. The brand’s bet on quality and features will be tested. For young global citizens, entrepreneurs, and tech fans, Tesla’s European push offers a real-world case study on how price, politics, and product lifecycles shape the fast-evolving EV landscape.
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Tesla's price war: Model Y Standard, Model 3 face uphill battle
cgtn.com
