Tesla has reduced the price of its Model 3 sedan across several European markets as the company struggles with slowing electric vehicle (EV) sales and a growing backlash against CEO Elon Musk’s political actions.

The lower-priced Model 3 Standard, which was previously launched in the US in October, is now available at:

• €37,970 in Germany
• 330,056 NOK in Norway
• 449,990 SEK in Sweden

This pricing strategy mirrors Tesla’s recent move to introduce a cheaper Model Y variant in both Europe and the United States.

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🚗 Why Tesla Is Cutting Prices

Tesla’s sales have dropped sharply in Europe, driven by:

1. Rising Competition from China

Chinese EV giant BYD has overtaken Tesla’s regional sales for the first time, intensifying pressure on Tesla’s market share.

2. Political Backlash Against Elon Musk

Many European buyers have distanced themselves from the brand following Musk’s:

• Support for Donald Trump’s election campaign
• Controversial role in the Department of Government Efficiency (Doge)
• Public political statements
• Appearance at Trump’s victory rally, interpreted by many as a Nazi-style gesture
• Support for Germany’s far-right AfD
• Comments about grooming gangs involving UK politicians

These incidents have impacted Tesla’s reputation, especially in Europe where political neutrality is valued by consumers.

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📉 EV Market Challenges Intensify

European EV demand has been weakening overall. In the UK:

• EV sales grew only 3.6% in November, the slowest growth in two years
• New taxes introduced in the latest budget could further discourage buyers

Industry experts warn that governments should support — not penalize — people transitioning to electric cars.

New UK EV Road Tax (From April 2028)

• 3p per mile pay-per-mile tax
• Estimated £250 per year per driver

The Society of Motor Manufacturers and Traders (SMMT) says this may slow EV adoption even further.

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🔍 Musk’s Response

Elon Musk believes the new lower-cost Model 3 will help attract a wider group of buyers and boost demand. However, analysts say price cuts alone may not be enough unless Tesla addresses customer concerns and intensifying competition.

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⭐ People Also Ask

1. Why did Tesla cut Model 3 prices in Europe?
   To boost declining sales and compete against rising EV rivals like BYD.
2. What is the new price of the Tesla Model 3 in Germany?
   €37,970.
3. Is Tesla facing a drop in sales in Europe?
   Yes, sales have declined due to competition and political backlash.
4. Which company is overtaking Tesla in Europe?
   Chinese EV maker BYD.
5. Why are European buyers angry with Elon Musk?
   His political statements and support for Donald Trump created controversy.
6. When was the cheaper Model 3 launched in the US?
   In October 2024.
7. What is the Norwegian price of the new Model 3 Standard?
   330,056 NOK.
8. Is EV demand falling in the UK?
   Yes, growth slowed to just 3.6% in November.
9. What new tax will UK EV owners pay from 2028?
   A 3p-per-mile road tax.
10. How much could the new EV tax cost drivers annually?
    Around £250 per year.
11. Why is Tesla losing market share in Europe?
    Competition and reputational issues.
12. Did BYD outsell Tesla in Europe?
    Yes, for the first time this year.
13. What is Musk’s solution to revive Tesla demand?
    Introduce lower-priced EV models.
14. Is Tesla cutting prices only in Europe?
    No, the US has seen price adjustments too.
15. Which Tesla model sells the most globally?
    The Model Y.
16. Why is Tesla’s reputation weakening?
    Controversial political actions by Elon Musk.
17. Did Musk quit the Doge department?
    Yes, he resigned after disagreements with Trump.
18. Are European governments imposing EV taxes?
    Yes, some countries like the UK are adding new charges.
19. Will cheaper Tesla models increase sales?
    It may help, but competition is still strong.
20. Which political actions upset Tesla buyers?
    Support for far-right groups and Trump.
21. How has the Swedish price changed for Model 3?
    It is now 449,990 SEK.
22. Is Tesla planning more price cuts?
    Analysts expect more reductions if sales stay low.
23. Why is EV competition increasing?
    Lower manufacturing costs in China and new brands entering Europe.
24. Is customer trust affecting Tesla?
    Yes, trust has reduced due to Musk’s controversies.
25. How are UK EV sales performing?
    They are slowing down significantly.
26. What is the main challenge for Tesla in Europe?
    Competition + negative publicity.
27. Do price cuts affect Tesla’s profit margins?
    Yes, they reduce profit per vehicle.
28. Why is BYD a strong competitor?
    Affordable pricing and high production volume.
29. Will political issues affect Tesla long-term?
    Possibly, unless the company distances itself from controversies.
30. Are EV buyers sensitive to brand image?
    Yes, EV buyers care about ethics and sustainability.
31. Does Europe have EV incentives?
    Some countries still offer subsidies, but many have reduced them.
32. Is Tesla production slowing down?
    Not yet, but demand is softening.
33. Can Musk’s actions hurt Tesla sales?
    Yes, brand association matters.
34. Why is the EV market slowing globally?
    High prices and reduced subsidies.
35. Is Tesla still the leading EV brand?
    Globally yes, but regionally it’s losing ground.
36. What makes the new Model 3 attractive?
    Lower price and improved efficiency.
37. Are younger buyers avoiding Tesla?
    Some are, due to political disagreements.
38. Is Tesla still popular in the US?
    Yes, but competition is increasing.
39. What role does politics play in EV sales?
    A big role when the CEO is highly influential.
40. Why are taxes being added to EVs?
    Governments want to replace lost fuel tax revenue.
41. Will EV taxes reduce adoption?
    Experts say yes.
42. Is Tesla planning new EV models soon?
    A cheaper next-gen model is rumored.
43. Does Europe prefer Chinese EVs?
    Buyers are shifting due to lower prices.
44. Is Tesla reducing prices globally?
    Yes, to stay competitive.
45. How does Musk’s image affect Tesla?
    Public perception directly impacts sales.
46. Could Tesla recover its market share?
    Yes, with competitive pricing and better PR.
47. Are price cuts effective in the EV market?
    They help but may not solve all issues.
48. Why did Musk disagree with Trump?
    Over a tax and spending bill.
49. Is Tesla still expanding in Europe?
    Yes, but growth has slowed.
50. Will the price cut boost European sales?
    It may attract new buyers, but competition remains strong.