What are you comparing it to when you say "relatively expensive"? I've read reviews comparing it favorably to a BMW 3 Series, which is in the same price range.

The Model S was in the same price range as the BMW 3 Series but only when you take into account the tax credit which just expired. Without that tax credit there's a difference of over $7k. That's part of the reason why Tesla is dropping their prices a bit now.

How was the Model S in the same price range as a 3 series? A Model S started around $70k after the tax credit was taken into account, a 3 series starts at about $40k. Do you mean the Model 3, rather than the S?

The Model S is quite a bit more expensive than a 3 Series. Perhaps you meant the Model 3, which is still competitively priced with the 3 series?

From the article:

"Tesla said more than three-quarters of orders for the sedan in the year’s final three months were from new customers, rather than reservation holders. That suggests many consumers are still waiting to buy versions of the vehicle at the long-promised $35,000 sticker price."

Compared to what most people can afford. My sister would love a Model 3 if she could get one for $20k

>Every Model 3 they are producing is relatively expensive and already has a buyer. What happens when they get to the end of the list of relatively well off buyers? Certainly there will still be demand, but it will be less profitable

they've already run out, did you not see all the tweets about tesla stores being open up until the end of the year and the reduction in price and the extra cars? clearly they've exhausted the areas they're allowed to sell in

They are maximizing for profit on each unit sold. Presumably, they’ll have had a reduction in debt to service with payments made from upfront higher margin vehicles.

It’s not a problem as long as they stay ahead of the curve margin wise. Lots of market demand outside of the US, which is why vehicle manufacturing firehose is pointed at Europe and China now with the US tax credit reduction.