Tesla Targets Europe's Value Buyers With New Long Range Model Y

Electric Vehicle (EV) giant Tesla TSLA has introduced the new Model Y Standard Long Range RWD in Europe. The new variant delivers an impressive WLTP range of 657 km, making it the most efficient Model Y to date. With energy consumption rated at just 12.7 kWh per 100 km and a cargo capacity of up to 2,118 liters, the vehicle focuses on using less energy while still being useful and spacious for everyday needs.

The Model Y Standard targets cost-conscious buyers who want a larger, crossover style vehicle without paying extra for premium features. While the Model 3 Standard remains Tesla’s most affordable offering, the Model Y Standard may appeal to buyers seeking more extra interior space and versatility for families or active lifestyles.

A key highlight of this new variant is the inclusion of Tesla’s AI4 computer, ensuring the vehicle is hardware ready for the eventual rollout of the Full Self-Driving (FSD) feature in the region. This feature gives buyers long-term value even at a lower price point, signaling Tesla’s commitment toward autonomous driving capabilities accessible over time.

Pricing plays a central role in Tesla’s strategy. While the Model Y Standard starts at €39,990 in most EU countries, delivering a range of 534 km, the Premium Long Range RWD, priced higher at $49,990, offers better range and more tech features.

The launch of the Model Y Standard comes at a critical moment in the European EV market, where demand for competitive electric SUVs continues to rise, even as buyers remain highly sensitive to price and driving range. By offering a larger, capable vehicle with the longest range in the Model Y lineup at a more accessible price point, Tesla is providing a calculated value proposition for customers seeking practicality, minus any premium costs.

Competitive Context

Hyundai Motor Company HYMLF expanded its IONIQ lineup in 2025 with an all-new three-row electric SUV, enhancing its EV portfolio with greater interior space, bold styling and advanced EV technology. The Hyundai IONIQ 9 is a spacious three-row electric SUV with a 110.3 kWh battery and up to 620 km WLTP range in long-range RWD form. It features ultra-fast 800 V charging (10% to 80% in just 24 mins), sleek aerodynamics, multiple motor configuration (RWD, AWD, Performance), and advanced comfort and efficiency tech.

XPeng XPEV, a global leader in smart EV, has launched XPENG G6 and XPENG G9, featuring next-gen 800V architecture and ultra-fast charging. Both vehicles use LFP batteries and advanced powertrains, achieving 10-80% charge in 12 minutes with the G9 peaking at 525 kW and G6 at 451 kW. RWD Long Range versions offer up to 585 km for G9 and 535 km for G6 WLTP range, combining efficiency, speed and intelligent design for a cutting-edge EV experience.

The Zacks Rundown on TSLA Stock

Shares of TSLA have gained 41.5% in the past six months compared with the industry’s growth of 40%.

From a valuation standpoint, TSLA trades at a forward price-to-sales ratio of 14.16, above the industry and its own five-year average. It carries a Growth Score of B.

See how the Zacks Consensus Estimate for TSLA’s earnings has been revised over the past 90 days.

Tesla stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research