Model 3's European debut comes at a critical time for Tesla, which just laid off seven percent of its full-time employees to help it cut costs while ramping up production of lower-priced versions of the car. When CEO Elon Musk announced the layoffs last week, he wrote in a letter to employees that, "This quarter, as with Q3 [2018], shipment of higher priced Model 3 variants (this time to Europe and Asia) will hopefully allow us, with great difficulty, effort and some luck, to target a tiny profit."

Musk also stressed the importance of selling lower-priced versions of the Model 3 in multiple markets this year, as Tesla aims to make inroads with its most affordable car to date. Tax credit changes will make the Model 3 more expensive in the US in July, and further still at the end of this year.