Tesla has launched a new, more affordable version of its Model 3 as part of its strategy to reclaim market share from budget Chinese electric vehicle (EV) brands. The introduction of the Model 3 Standard comes after Tesla experienced a decline in sales, losing its market leader position in 2025 to Chinese manufacturer BYD, which sold over 51,000 units in the UK. In comparison, Tesla’s sales dropped to 45,500 units, marking a significant 9.58% decrease from the previous year.
This new version of the Model 3 is priced at £37,990, making it £2,000 cheaper than the previous base model. This price adjustment aligns Tesla more competitively with European rivals; the Model 3 is now £13,000 less than the BMW i4, approximately £7,600 cheaper than the Mercedes CLA Electric, and £7,000 less than the Polestar. Additionally, it offers a pricing advantage over the BYD Seal, which retails for around £7,600 more.
Features and Financing Options
To make the Model 3 accessible to a broader audience, Tesla has introduced flexible leasing options. Motorists can lease the new Model 3 for just £299 per month with a down payment of £3,588 spread over 36 months. This strategy aims to attract consumers who may hesitate to pay the full price upfront.
While the new Model 3 Standard offers a lower price point, some luxury features have been removed. Notably, it lacks a cover for the cupholders and comes with cloth seats instead of leather. Nonetheless, this version still exceeds some offerings available in the US market, featuring smaller wheels for improved efficiency.
The Model 3 Standard is equipped with a 70 kWh battery, providing an impressive range of up to 332 miles on a single charge. Performance remains a strong selling point, with the car capable of accelerating from 0 to 60 mph in just 6.2 seconds. However, it does have an electronically controlled top speed limited to 110 mph.
Competitive Landscape
Tesla’s release of the new Model 3 comes as the company faces increasing competition from other Chinese entrants such as Omoda, Chery, and Jaecoo. These brands have gained traction among UK consumers, presenting a formidable challenge to Tesla’s dominance in the electric vehicle market.
As Tesla navigates this competitive landscape, the new Model 3 aims to bolster its market position and attract price-sensitive customers. With growing interest in electric vehicles globally, Tesla’s strategic pricing and model diversification could prove crucial in regaining its foothold in the UK’s rapidly evolving EV sector.
