In Germany, the cheapest Model Y is priced at €39,990 but it faces a crowded field of European and Chinese brands offering EVs below €35,000.

Across the continent, car plants are operating at an average of 55 percent of capacity, according to consultancy AlixPartners.

Tesla’s lower-cost Model Y and Model 3 trims achieve cost savings through small and large deletions, raising questions about how far is too far.

Many automakers are digging into their own coffers for big discounts to keep EV inventory moving, and several brands have introduced models with prices more comparable to gasoline vehicles.

A stalled EV strategy, crumbling margins, and geopolitical headwinds have plunged the automaker into crisis mode. CEO Oliver Blume is scrambling to regain control.

The 2026 Paris auto show will see the return of European brands that skipped the 2022 event. The show is expected to draw more than 500,000 visitors.