Tesla is soon about to shake the European market for electric cars (EVs) once again. The company will also start selling its cheapest electric car models in Italy on October 22, starting at prices below €25,000, the first time Tesla has sold cars at lower prices in Europe. Tesla’s cost-cutting is coupled with the Italian government subsidy scheme to make the price drop possible.
Tesla Model 3 Standard will retail initially at a new price of €24,990, with a larger Model Y Standard retailing at €28,990. The two are eligible to receive full national EV subsidies, which reduces the barriers to entry of electric mobility in one of the fastest-growing EV markets in Europe.
A Game-Changer for the Italian Market
Over the years, Tesla cars have been regarded as luxury models, and in most cases, they have been sold at a price that many average earners are unable to afford. Under this new incentive-driven pricing, the perception might change overnight. Italy, which has traditionally lagged behind other markets such as Norway or Germany in EV adoption, is now set to make a significant jump forward.
Industry observers believe that Tesla’s pricing will not allow the mainstream automobile companies to compete with it. The dominance of the sub-30K European brands such as Renault, Peugeot, and Volkswagen will now be challenged in earnest due to a better EV charging network, software ecosystem, and established performance of Tesla.
Italia 🇮🇹
Model 3 da 24.990€ e Model Y Standard da 28.990€, grazie agli incentivi statali (esclusi oneri aggiuntivi)
Prenota il tuo voucher per l'incentivo dal link qui sotto – disponibile dal 22 ottobre alle 12:00https://t.co/BWduTRbwqn pic.twitter.com/oTdBrPO4jM
— Tesla Europe & Middle East (@teslaeurope) October 17, 2025
Model 3 Standard
The Model 3 Standard has the same minimalist design and high-tech interior as other Tesla models, with a large touchscreen in the middle to control all driving and infotainment purposes. Even though it is the cheapest Tesla to be sold in Europe, it also provides good performance with approximately 430 km (WLTP) of range and rear-wheel drive.
The Model 3 is also environmentally focused, as the inside is furnished with vegan materials, and the cabin layout is simplified. Such characteristics as the autopilot offered by Tesla, updates via the internet, and the ability to use the Supercharger network are what make it unique even among the more affordable EVs.
Model Y Standard
The Model Y Standard is an affordable entry for an Italian buyer to the SUV market, with a price range of €28,990 after incentives. The car has a mileage of about 455km (WLTP) and has five spacious seats, thus suitable for families.
The efficient heat pump system in Tesla makes the system ideal in both hot summers and cool winters- ideal in Italy, where the climate is varied. The panoramic roof of the Model Y, its sophisticated safety features, and huge cargo space make the model one of the most applicable EVs in the segment.
How Incentives Make the Difference
The pricing breakthrough of Tesla is possible thanks to the new EV incentives being introduced in Italy to speed up the shift of the country to zero-emission vehicles. The program offers a huge exemption to consumers who dispose of old, more polluting vehicles at the time of buying a new electric car. The government subsidy may be as high as €13,750 the eligibility of the buyer.
With these incentives, along with its own simplified manufacturing and distribution model, Tesla can now compete in price with most of the European EVs of the mass market, and even lower it.
