This Tesla move could help the EV maker shake a sales slump

Tesla has launched cheaper versions of its Model Y SUV and Model 3 sedan in Europe to counter market-share losses. The new trims, starting at $36,990 in the U.S. and EUR37,970 in Germany, aim to boost sales against competition from Chinese automakers. Despite the move, Tesla faces a 39% sales decline in the EU and challenges in China and the U.S. Deliveries of the new Model 3 are expected in Q1 2026, as Tesla seeks regulatory approval for its Full Self-Driving system in Europe.

By William Gavin Elon Musk's company hopes an 'ultra-low cost' trim of a best-selling EV can help it stem market-share losses Tesla has launched lower-priced versions of its Model Y SUV and Model 3 sedan, which account for the majority of its annual deliveries, in an effort to drive sales. Tesla on Friday introduced a cheaper version of its Model 3 sedan in markets across Europe as the electric-vehicle maker attempts to stem market-share losses with competition heating up. The Model 3 "standard" debuted in the U.S. two months ago but is only now being made available in Europe. A similar trim for the Model Y SUV was also introduced in October and is available in both regions. The two vehicles are now the cheapest trim of the best-selling EVs that account for the vast majority of Tesla's sales. But buyers must accept tradeoffs on some quality-of-life features, as well as performance. The new Model 3 trim, which Tesla described as having an "ultra-low cost of ownership," starts at $36,990 in the U.S. and at EUR37,970 ($44,248) in Germany. The second-cheapest trim of the Model 3, the formerly base tier now labeled as "premium," costs $42,490 in the U.S. and EUR45,970 ($53,571) in Germany, according to Tesla. See more: Tesla is the only Big Tech stock without a new high this year - but it's getting closer But the Austin, Texas-based company hopes cheaper EVs will help it boost sales in Europe, where Chinese automakers like BYD (CN:002594) have been gaining market share. It's unclear how much of an impact the new trims will have, however, since several rivals already sell EVs for less than $30,000. Don't miss: Tesla just posted rare growth in China. Here's what sparked the sales momentum. Tesla's deliveries continued to decline in several European markets last month, including in Germany and the Netherlands. Through October, Tesla was on pace for a 39% year-over-year sales decline in the European Union, according to an industry group. Its share of the market fell to 1.3% from 2.2% over that period. That, combined with a rocky performance in China and weaker sales in the U.S., has helped put Tesla on pace for its second straight annual decline in vehicle sales. Wall Street expects December-quarter deliveries of 450,000 units, a 9% drop compared with a year earlier, according to FactSet estimates. Deliveries of the new Model 3 are expected to start in the first quarter of 2026, as Tesla ramps up its lobbying campaign in Europe. For years, the company has attempted to win regulatory approval for Full Self-Driving, its advanced driver-assistance system. Tesla has focused its recent efforts on Dutch regulators and plans to demonstrate its technology in February. If approved, that could push customers to purchase the system and begin generating training data for the company. If FSD wins approval in the Netherlands, other nations in the E.U. will have the option to recognize that exemption, according to Tesla. Then the company said it would ask an E.U. committee to officially approve the software. Read: How Tesla can leave 'obsolete' rivals in the dust, according to this analyst -William Gavin This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal. (END) Dow Jones Newswires 12-05-25 1153ET