Tesla is trying to generate new business from disillusioned European customers with a remix of an old classic.
The Guardian reported on the EV automaker’s launch of a new, more affordable version of its iconic Model 3 in Europe. The Model 3 Standard aims to boost sales amid falling demand. The vehicle is priced at €37,970 (about $44,170) in Germany, and is also available in Norway and Sweden at reduced rates.
The move comes as Tesla faces growing competition in the European market, especially from Chinese manufacturer BYD. BYD celebrated first when it surpassed Tesla’s sales in the region this spring.
Tesla’s sales also faced self-inflicted challenges, due to the consequences of CEO Elon Musk’s political activities. His polarizing support for Donald Trump in the US election and his subsequent time as czar of the Department of Governmental Efficiency led many consumers to withdraw their support for Tesla, viewing the brand and its politics as one and the same. His praise of Germany’s far-right AfD party also received significant backlash.
The entry of the model follows the introduction in Europe of the lower-priced Model Y SUV, Tesla’s best-selling model. Despite the lower price of the Model 3 Standard, the new models maintain driving ranges above 300 miles. What drivers will miss are some of the vehicle’s premium features and finishes.
Tesla’s struggles spill over across the channel to the UK and are having ripple effects on their EV market. There, EV sales increased by a mere 3.6% in November, the lowest level in two years, according to the Society of Motor Manufacturers and Traders (SMMT).
“[This] it should be seen as a wake-up call that a sustained increase in demand for EVs cannot be taken for granted,” said Mike Hawes, the chief executive of SMMT, to the Guardian.
Regardless of what you think of Musk or Tesla, their new models provide an economical option for consumers weighing the transition to an EV. Since EVs are better for the planet than gas-powered vehicles and provide consumers with a range of benefits, that’s a positive development.
One way for drivers to optimize EV ownership is by charging at home. It is much more economical than using public stations and offers substantial annual savings. Qmerit supports homeowners interested in installing Level 2 EV chargers, by providing free installation estimates.
In addition, installing solar panels can boost savings. TCD’s Solar Explorer can help connect you with verified installers and potentially save you up to $10,000.
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