Taycan is a pretty nice package, and it its understandable that people would cross shop them with Tesla.
Believe it compares more with a SUV like the Model X, but the Model S can hold it's own as it is a 4 door hatchback with loads of room inside to carry people and cargo.
Biggest issue with many will be that the Taycan has limited charging access for long distance road trips. Makes it more of a city car for many.
Taycan still has Federal Tax Credits that can make it a better $ decision for the wealthy.
Some get hung up on the Model S still having the same basic body style for a long time. While it still looks great on the road, I can understand the desire to get something that looks new (but not necessairly better).
Watching Sandy Monro tear down of the new Model S Plaid points out just how many significant changes there are under the skin. The advances in suspension, packaging, battery, charging, heat pump and octovalve technology really set the car apart from the competition.