For the past 15 years people had been trying to make the mass market EV. The envisioned future was that the every day man would be driving this basic EV instead of their $15k ICE commuter car. That was the goal, obviously influenced to a great extent by both fuel prices and climate change concerns. All EV car models before the Tesla Roadster were trying to target this market.

The Model S targeted a new market entirely. Nobody had tried to do a luxury sedan EV and kodus to Tesla for spotting that niche, but that was not the goal that everyone else was chasing. It was something else entirely.

From an economics and from a technology point of view, building an $80k EV with decent range is insanely easier than building a $15k EV. Even if it has to be a luxury car and look good. It still gives you that $20k leeway to equip you car with a massive battery.

The misleading part was trying to claim that they had solved the problem that everyone else was working on, when in fact they had not. And they still have not today as evidenced by the $35k price tag of the Model 3.