STOCKHOLM (Reuters) - Tesla launched a new, lower-priced standard version of its Model Y SUV in Europe on Friday, aiming to revive demand that has sharply declined over the past year.
The all-new Model Y Standard Range, unveiled earlier this week, marks Tesla's latest effort to boost sales in Europe, where electric vehicle sales continue to slow amid intensifying competition.
In Germany, this version is priced at €39,990 (approximately $46,304), about €5,000 lower than the previous cheapest Model Y variant in the European market.
However, this more affordable model will face intense competition—the market for compact electric vehicles priced below €35,000, dominated by European and Chinese brands, is already quite crowded.
Tesla launched the Model 3 Standard trim in the U.S. earlier this week, but this variant remains unavailable on most European market websites.
To achieve the price reduction, Tesla has scaled back certain features in the new model: the Model Y Standard trim features simplified interior lighting, fewer speakers, fabric seat covers, and omits automatic steering as standard equipment.
“This is a highly competitive price point,” said Kristina Bø, Secretary General of the Norwegian Electric Vehicle Association. “The model boasts excellent technical specifications and a suitable size for this price segment, positioning it to compete strongly against other brands in the market.”
Tesla's official website shows that the company has priced its new Model Y SUV in Norway at 421,996 Norwegian kroner (approximately $41,714).
The vehicle is priced at 499,990 Swedish kronor (approximately $52,521) in Sweden. Tesla stated the model will launch in Germany, Norway, and Sweden in November or December.
This move comes as Tesla faces weak demand in Europe. Despite previous updates to the Model Y lineup, new vehicle registrations have declined significantly across multiple markets this year.
($1 = 10.1163 Norwegian crowns)
($1 = 9.5198 Swedish crowns)
($1 = 0.8636 euros)
