Tesla on Friday launched a new, lower-priced version of its Model 3 in Europe, two months after introducing the vehicle in the United States, as the electric vehicle

maker seeks to revive slowing demand amid rising competition.

The company faces weakening sales momentum across Europe, where new registrations have dropped sharply this year despite a refreshed Model Y line-up. Many consumers have turned to rival models, including Volkswagen’s ID.3 and BYD’s Atto 3.

Tesla said in a post on X that the new Model 3 offers an “ultra-low cost of ownership.” The vehicle sheds some premium finishes and features but retains a driving range of more than 300 miles (480 km). Deliveries are expected to begin in the first quarter of 2026.

Chief Executive Elon Musk has long pledged to deliver mass-market electric vehicles. However, the company last year abandoned plans for an all-new $25,000 model in favor of producing lower-cost versions of existing cars — a move that has raised concerns among analysts about the risk of cannibalising higher-margin sales.

Tesla in October also launched a lower-cost Model Y crossover as it seeks to defend its market share against European and Chinese rivals that are offering increasingly affordable electric vehicles, many priced below $30,000.

The new Model 3 Standard is priced at 37,970 euros ($44,299.60) in Germany, 330,056 Norwegian crowns ($32,698) in Norway and 449,990 Swedish crowns ($47,820) in Sweden, according to Tesla’s website. In Germany, the second-cheapest “premium” version is listed at 45,970 euros.

Tesla introduced the Standard variant of the Model 3 in the U.S. in October, where it is currently priced at $36,990.

While Musk has shifted the company’s longer-term focus toward artificial intelligence, including robotaxis and humanoid robots, new vehicle launches remain central to Tesla’s near-term revenue growth.