Gross margins are significantly higher than that (maybe below Tesla's 25%, but they sell many cars cheaper than the model S).

So a company that has widening losses claims a 25% margin on its cars. Sounds like some interesting accounting is at work.

Ask Bob Lutz whether margins are greater on a Chevy Camaro or a Cadillac ATS (exact same platform, one sells for about $10k more than the other).

Seems like you're missing the point. If a set of parts costs you X, and you can sell it as one product for 2X and as a different product for 3X, which one yields better profits?

We're not talking past each other. A Cadillac and a Chevy are much closer to parity than a Model 3 and a Model S/X (considering both parts and manufacturing techniques). I don't know what the Model 3 margins are yet, but I'm confident they're going to be above 15%.