They aren't building on a scale never seen before, this is relatively small scale for the traditional manufacturers. Yet you hear stories about how 3's in particular seem to be in some cases thrown out the door out of sheer will.
Tesla is just kind of fascinating this way- pushing the envelope in so many places, but just floundering to get the basics right in so many others. I really hope they succeed, and may even buy a model 3 when I am next in the market for a new car, but I feel they are still selling to "early adopters" when they really should have been out of these growing pains years ago. I would never recommend one to my less tech enthused family members.
Plus, there was a guy rebuilding a crashed model S and had issues sourcing some components, then Tesla gave him issues activating the car.
I personally would have already leased/bought a Model 3 if I didn't have serious concerns about their supply chain and repair issues brought to light by people like Rich Rebuilds and others. I am waiting it out to see if it improves, or if Tesla goes bankrupt/forced merged and their IP lives on elsewhere.
A kid in my office said the same thing and I have no idea where people are getting this from. A brand new Model 3 costs about as much as an Audi A4, BMW 3-Series, or Mercedes-Benz C-Class.
The Model 3 is a compact executive car, and competes directly in that category. It is for the mass affluent. Not the mass market.
But if we're talking about actually sitting in the car, Tesla is definitely in Honda/Toyota territory.
I don't think there will be a singular Tesla killer, but rather, Tesla is increasingly going to be attacked by all sides: Hyundai/Nissan/GM on the mass market side, Jaguar/Audi/Mercedes/BMW on the luxury side, and Porsche on the ultra luxury high end. The Model 3/Y is currently positioned in the premium segment between mass market and luxury. That's sorta Honda/Toyota territory; I think they'll need to bring out EVs for Tesla to be in serious trouble.