The strategy (to me) seems to place urgency of the blue star project perhaps higher than the X.
The Model X has one major advantage for Tesla: it shares the Model S drive platform. This greatly reduces the cost of bringing the Model X to market. Gen III will be largely a new vehicle from the ground up, and with the intended price reduction it will have to be.
Once Gen III is announced, will it cannibalize sales of S/X? Cause for concern?
Musk: Expecting 30K-40K Model S Demand Per Year: Video - Bloomberg
In interview with Bloomberg, Elon explains thoughts behind expecting a volume of 30,000/year to 40,000/year for the Model S.
(US, Europe, Asia each more than 10,000/year).
I agree. I think Tesla is absolutely following the right model which is why I don't see that as a risk factor for the long-term. For model S there is no "EV Premium" as it is price competitive w/ it's ICE peers - makes perfect sense.Overall, I think Tesla has made a wise choice pursuing the premium market for cars (even for Gen III, which is teed up against the BMW 3-series and the Audi A4, not the Nissan Altima).