With federal and state incentives the price drops below $30k for California which is Tesla's biggest market so far. People have also been willing to pay 5-10k more for Tesla than their previous cars. So Tesla just needs to stay ahead of the demand at each price point. It's not like people pay for their cars in one go they pay in bank installments. And the $150~250 savings in gas and servicing costs makes the monthly cost of ownership of $25k Camry and $35k Tesla the same over 5years. With Tesla ownership being cheaper after 5years.