The reduction varies between the versions and particular countries. According to reddit, in Germany the change is:
- Standard Range Plus RWD: €3,000 (from €42,990 to €39,990; €33,990 after subsidy)
- Long Range AWD: €2,500 (from €52,490 to €49,990; €43,990 after subsidy)
- Long Range Performance AWD: €3,500 (from €58,490 to €54,990; €48,990 after subsidy)
Teslarati reports that the highest drop is on Standard Range Plus in France - by €6,190 (from €49,990 to €43,800), likely to qualify for €7,000 incentives. The LR and P versions went down respectively by €5,810 and €6,000.
Tesla Model 3 prices in selected European markets as of January 20, 2021:
It's not clear what was the main cause of the price reductions. We guess that it might be a result of several factors, including a necessity to stay competitive in a dynamically changing market, as well as exchange rates, as well as maybe some cost savings that allows for reductions.
We must remember that Tesla was not able to maintain the Model 3 sales level from 2019 (initial year) and probably would like to at least keep the current momentum, until the locally made Model Y comes out.
A confusing thing is that, not so long ago, Tesla increased prices on the Model S and Model X in Europe. Some thought that maybe that's because Tesla is preparing some upgrade.