Tesla has introduced a more affordable version of its Model 3 in Europe, aiming to boost sales amid concerns over Elon Musk’s partnership with Donald Trump and a decline in electric car demand.

Musk, the CEO of the electric vehicle manufacturer, believes that this lower-priced variant, which was rolled out in the US last October, will stimulate demand by appealing to a broader audience.

The new Model 3 Standard is priced at €37,970 (£33,166), NOK 330,056 (£24,473), and SEK 449,990 (£35,859) in Germany. This release comes after Tesla’s successful launch of the affordable Model Y SUV in both Europe and the United States.

While the more affordable Model 3 and Model Y versions forgo some luxury finishes and features found in pricier models, they still provide over 300 miles (480 km) of range.

Tesla’s sales have decreased in Europe as it contends with growing competition from Chinese rival BYD, which became the first company in the area to outpace the U.S. electric car maker earlier this spring.

Additionally, buyer backlash against Musk’s support for Trump’s political endeavors has adversely affected sales across the EU.

Musk, who implemented significant layoffs while leading the Office of Government Efficiency, stepped down in May following disagreements with President Trump regarding the “big, beautiful” tax and spending legislation.

Furthermore, Musk has distanced potential clients through various controversial political actions, including a Nazi salute at Trump’s victory rally, endorsing Germany’s far-right AfD party, and accusing Keir Starmer and other prominent British politicians of concealing scandals related to gang raids.

Critics warn that a new tax on electric vehicles introduced in last month’s Budget could dampen demand in the UK. According to the Society of Motor Manufacturers and Traders (SMMT), UK electric vehicle sales rose by only 3.6% in November, marking the slowest growth in two years.

Mike Hawes, CEO of SMMT, stated: “[This] sustained increase in demand for EVs should be regarded as a wake-up call that we cannot take this for granted. Instead of penalizing drivers, we must seize every chance to motivate them to transition to electric vehicles.”

The Chancellor’s forthcoming pay-per-mile road tax for EVs will impose a charge of 3p per mile starting in April 2028, resulting in an average annual cost of about £250 for drivers.